Nov
08

Forex Fall

chinese-exchangeAfter peaking at $4 trillion in 6/15, China’s foreign exchange holdings have steadily fallen and are now $3.12 trillion, their lowest level since 3/11. The decline would be larger absent China’s trade surplus of roughly $50 billion/month which boosts China’s foreign currency holdings. The continued decline means China’s currency remains overvalued and China’s trade surpluses would be larger without the government’s use of its reserves to ward off faster depreciation.

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  1. Rob Goldman says:

    Your opinion is valuable, as our great Country has built for us the wonderful freedoms that support a forum like yours to exist without question. I must express my disappointment that on the day after history was made you chose to discuss China. I’m sure many of us would have appreciated your honest thoughts.

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