13.01.2015 - On track for a weaker yuan in 2015
On 29 December, the State Administration of Foreign Exchange (SAFE) in China released its statement of China’s Net International Investment Position (IIP) for the third quarter of 2014. IIP is a statement of how much foreign currency assets the country has and how much of foreign currency liabilities the country has incurred. China’s net IIP declined in the third quarter. The net IIP was $1.8 billion compared to $1.97 billion at the end of 2013. This has occurred despite the slight rise in China’s foreign exchange reserve assets from $3.88 trillion to $3.95 trillion during the same period. The culprits are the rise in (a) foreign currency loans and (b) currency and deposits. The latter refers presumably to foreign currency loans of the banking system...............................................Full Article: Source
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