Increment of China’s foreign exchange in May this year hit a new high of suspected re-influx of capital arbitrage
According to the Voice of China, “Central News” 14:40 report, released recently by the latest central bank data showed, as at the end of 5, China’s foreign exchange balance of financial institutions, 170,000 658.751 billion yuan, of which in May accounted for financial institutions to add the Exchange paragraph to 242.565 billion yuan, incremental hit a new high this year. This is also the foreign exchange growth for two consecutive months. Market analysts believe that international capital flows to the previous downward trend has changed, and significant signs of recovery has stabilized.
Classroom News: What is foreign exchange? Increase or decrease in mean what?
Refers to the acquisition of foreign exchange foreign exchange assets of banks and put the corresponding national currency. The formation of the bank to buy foreign exchange currency invested, the purchase of foreign currency assets constitute a bank’s foreign exchange reserves. For example, in May this year, the new foreign exchange is 242.565 billion yuan, which means that in May this year, the domestic banking system due to the net purchase of foreign exchange and occupied as much as RMB 242.56 billion yuan of funds, if converted into U.S. dollars, the equivalent net purchase of about 35.5 billion U.S. dollars around.
In general, an increase in foreign exchange means that the inflow of foreign capital outflow and more than that, or it may be optimistic about the foreign institutions in China’s economic might is the expected appreciation of the renminbi, or dollar, leading to hot money there is an influx of arbitrage. And so on.
China’s foreign exchange in May this year, a significant incremental increase in what the reasons
This is our country’s foreign exchange this year increment of 200 billion yuan the first time, a record high this year. Of course, this data and the international financial crisis in 2008 before the outbreak of a comprehensive monthly growth rate of nearly 4,000 billion compared to a big gap there.
As a result of last year’s financial crisis triggered a global economic crisis, last year, the United States and other Western countries and territories to leverage caused by the return of capital, and investors choose to hedge U.S. dollars, China’s capital outflow of certain signs; At the same time, Western countries the market recession makes the rapid shrinkage of external demand, China’s foreign trade surplus and foreign direct investment fell, but also to international capital flows have been falling.
For the foreign exchange hit a new high this year, market analysis may be two reasons: First of all, the market may be the dollar, investors choose to invest in yuan or speculation. Secondly, in the context of economic crisis, China’s economy is relatively optimistic about the stability of the RMB exchange rate also led to some capital back.
In addition, the market is now expected that the yuan to appreciate at the end of the channel to restart, which will allow future foreign exchange continues to grow, and the Ministry of Commerce of the State Council recently proposed to relax foreign investment to domestic investment in real estate. If you can stop the momentum of the export decline, coupled with growth in foreign investment, the future capital inflows were also gradually rising trend.
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