China Dec forex reserves drop biggest on record - PBOC

FXStreet (Mumbai) - According to the data published by PBOC and reported by Reuters on Thursday, China’s foreign exchange reserves, the world's largest, fell $107.9 billion in December to $3.33 trillion, the biggest monthly drop on record.

China's foreign exchange reserves fell $512.66 billion in 2015, the biggest annual drop on record.

The value of its gold reserves stood at $60.19 billion at the end of December, up from $59.52 billion at the end of November.

Gold reserves stood at 56.66 million fine troy ounces at the end of December, up from 56.05 million at end-November.

Yuan devalued again; China’s lack of communication confuses markets

The People's Bank of China (PBOC) today once again guided the yuan lower, setting the official midpoint rate on the yuan at 6.5646 per dollar, the lowest since March 2011. Following the central bank’s decision to allow the currency a free flow, yuan plunged to a record low of 6.7511 against the dollar before recovering to 6.6910 on suspected intervention. The onshore yuan rate also fell to 6.5941, touching a five-year low and was at 6.5920 in late trading. The PBOC's China Foreign Exchange Trade System (CFETS) stressed that there was really no basis for yuan's depreciation.
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GBPUSD at lowest level since 2010 - Investec

Research Team at Investec, notes that the U.S. Dollar continues to strength after the first Fed rate hike since the financial crisis, whilst Sterling continues to weaken after the BoE’s dovish November Inflation Report (IR).
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