1/5
According to the China section of the Treasury Department's biannual report to Congress, published Friday, "China’s headline foreign exchange reserves increased by $102 billion in the four quarters through June 2021, standing at $3.2 trillion."
home.treasury.gov/system/files/2…
According to the China section of the Treasury Department's biannual report to Congress, published Friday, "China’s headline foreign exchange reserves increased by $102 billion in the four quarters through June 2021, standing at $3.2 trillion."
home.treasury.gov/system/files/2…
2/5
"In contrast," it continues, "over the same period monthly changes in the PBOC’s foreign exchange assets recorded no significant changes, increasing by only $6.2 billion. Meanwhile, monthly net foreign exchange settlement data, another proxy measure for...
"In contrast," it continues, "over the same period monthly changes in the PBOC’s foreign exchange assets recorded no significant changes, increasing by only $6.2 billion. Meanwhile, monthly net foreign exchange settlement data, another proxy measure for...
3/5
foreign exchange intervention that includes the activities of China’s state-owned banks, recorded net foreign exchange purchases of nearly $278 billion (1.7% of GDP) in the four quarters through June 2021, adjusted for changes in outstanding forwards."
foreign exchange intervention that includes the activities of China’s state-owned banks, recorded net foreign exchange purchases of nearly $278 billion (1.7% of GDP) in the four quarters through June 2021, adjusted for changes in outstanding forwards."
4/5
Is this a lot of dollar buying by the state banks? According to the Treasury Report, "This figure represents the largest 12- month sum of net purchases since 2014." My guess is that it was even higher in the second half of 2021.
Is this a lot of dollar buying by the state banks? According to the Treasury Report, "This figure represents the largest 12- month sum of net purchases since 2014." My guess is that it was even higher in the second half of 2021.
5/5
"The precise causes for the large divergence between monthly changes in the PBOC’s foreign exchange assets and net foreign exchange settlements data remain unclear."
From the rest of the report I'd say perhaps not so unclear. Why else would the banks take such large losses?
"The precise causes for the large divergence between monthly changes in the PBOC’s foreign exchange assets and net foreign exchange settlements data remain unclear."
From the rest of the report I'd say perhaps not so unclear. Why else would the banks take such large losses?
I meant "good" of course.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
