China Forex Purchases Rise in May

China’s forex purchase position reached 27.430 trillion yuan (4.44 trillion U.S. dollars) at the end of May,marking the sixth straight month of rises, the People’s Bank of China (PBOC) announced Friday.

The figure resulted in a net increase of 66.86 billion yuan in May from April’s forex purchase position of 27.363 trillion yuan, according to the bank.

The May purchase figure was down from April’s 294.35 billion and the average 315.3 billion during the first four months of the year, indicating a falling trend in the volume of capital inflows, PBOC data showed.

China has witnessed accelerated capital inflows since major economies launched monetary easing policies.

Net foreign exchange purchases totaled 1.22 trillion yuan in the first three months, more than double last year’s total.

China’s foreign trade volume grew 0.4 percent year on year in May to 345.1 billion U.S. dollars, down from the 15.7-percent gain seen in April, according to the General Administration of Customs.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
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