Official data has shown that China’s foreign exchange reserves shrank in September.
China’s foreign exchange reserves is the largest in the world. Its reserves stood at $3.055 trillion at the end of August and reduced to $3.029 trillion in September.
Meanwhile according to Wang Chunying, spokesperson for the State Administration of Foreign Exchange was quoted as saying that “China’s current account will maintain a reasonable size surplus. He said this in response to a question on future trends.
The Renminbi fell 3.2% against the dollar in September, while the dollar rose by about the same margin against a basket of other major currencies.
On the other hand, the value of China’s gold reserves shrank to $104.72 billion at the end of September from $107.49 billion at the end of August.
China’s central bank said that it will reinstate foreign exchange risk reserves for some forwards contracts, a move that would make betting against the Renmimbi more expensive in order to slow the pace of recent depreciation.
