Join        Login             Stock Quote

Why Is There A $71 Billion Difference Between China's FX Reserves And... China's FX Reserves?

 February 06, 2010 01:54 PM

Zero Hedge has been following the topic of Chinese FX reserves, and specifically their change over time, with great interest, as this (presumably) primarily dollar-denominated amount is the critical "dry powder" that our key foreign purchaser of Bonds, Notes and Bills uses when bidding on Treasury Auctions. Should China's FX reserves decline, or be forcibly diversified, the amount left over for UST purchases will be correspondingly less at a time when every UST auction could be the last should PDs, Indirect and Direct bidders not have enough bidding interest to cover growing supply. As China is very secretive about the composition of its FX reserve portfolio, there is usually a lot of guess work involved in tracking where and how the money flows. What we do know, according to a January 15th report by People's Bank of China (PBOC), is that in 2009 FX reserves increased by $453.1 billion to a total of $2.399 trillion... Or so we thought. Yesterday China's official State Administration of Foreign Exchange (SAFE) released an update on FX reserves, according to which FX reserves increased... by only $382.1 billion, a $71 billion differential from the PBOC's number. (an English translation of the SAFE page can be read here).

[Related -There's One Problem With This Market Rally...]

[Related -Mr. Market's Wary Outlook: Less Severe But Still Worrisome]

We quote from the PBOC's December 2009 Financial Statistics report:

At end-December 2009, China's foreign exchange reserves reached USD2.3992 trillion, registering an increase of 23.28% year on year. In 2009, official foreign exchange reserves rose by USD453.1 billion, adding USD35.3 billion year on year. In December, foreign exchange reserves expanded by USD10.4 billion.

Next Page >>12
iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageMr. Market's Wary Outlook: Less Severe But Still Worrisome

Mr. Market’s cautious outlook of late is less acute at the moment relative to recent history, but it’s not read on...

article imageThere's One Problem With This Market Rally...

All major U.S. indices closed higher last week, logging the second week of strength following choppy read on...

article imageWill Last Week’s Relief Rally In Emerging Markets Last?

Stocks in emerging markets posted their best weekly gain in nearly four years last week. Analysts are read on...

article imageHow Much Longer Can Our Unaffordable Housing Prices Last?

Markets discover price via supply and demand: Big demand + limited supply = rising prices. Abundant supply read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Bulls Rally, but Bears Lurk
More Articles on: Finance

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.