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Australia to Invest 5 Percent of Foreign Reserves in Chinese Bonds

It will be the first time the Reserve Bank of Australia (RBA) will invest in sovereign bonds of an Asian country other than Japan.

The RBA has foreign currency reserves of A$38.2bn ($39.2bn; £25.7bn).

Earlier this month, the Australian dollar became the third currency to trade directly with the Chinese yuan.

“This decision to invest in China is an important one,” Philip Lowe, deputy governor of the RBA said in a speech to the Australian Chamber of Commerce in Shanghai.

“It reflects the broader economic relationship between China and Australia and our increasing financial ties.

“It provides greater diversification of our investments and will help with our understanding of the Chinese financial markets,” he added.

via BBC [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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