Chinese FX reserve shrink is just a public-to-private asset swap

[Abacin]

All about China’s public-to-private foreign asset swap | FT Alphaville

This is just a result of China loosing FX reserve control to internationalize Yuan. In February, government FX reserve only shrinked $28.7 billions. The bombardments by Western media and capital funds to short Yuan are clearly doomed. I expect Yuan to be stable around 6.5 range unless significant movements in the financial world.

 

[That Guy]

lol, it really is depressing, when looking at total numbers, without context.

"only shrinked $28.7 billions"

meanwhile, Pakistanis are drooling all over their all time high reserves of $20 billion. If i didn't have a basic idea of how economies work, I would probably be drooling with them.

 

[Aepsilons]

lol, it really is depressing, when looking at total numbers, without context.

"only shrinked $28.7 billions"

meanwhile, Pakistanis are drooling all over their all time high reserves of $20 billion. If i didn't have a basic idea of how economies work, I would probably be drooling with them.

Its fine, my friend, the most important part is that Pakistan's economy is developing and growing. That's what counts, and quite frankly, that's what matters. China's overall development should be a role model for Pakistan and all Pakistanis.

 

[Nan Yang]

No panic dumping of Chinese assets in Q3 2015, BIS discovers
During the long years of RMB appreciation against the dollar, Chinese corporations took out loans in dollars, expecting to pay them back in appreciated RMB. Now they are repaying dollar loans. They are also shrinking their holdings of offshore RMB deposits, which they accumulated in anticipating of a rising RMB.


No panic dumping of Chinese assets in Q3 2015, BIS discovers – Asia Times

 

[Edison Chen]

All about China’s public-to-private foreign asset swap | FT Alphaville

This is just a result of China loosing FX reserve control to internationalize Yuan. In February, government FX reserve only shrinked $28.7 billions. The bombardments by Western media and capital funds to short Yuan are clearly doomed. I expect Yuan to be stable around 6.5 range unless significant movements in the financial world.

Yes. If residents purchase foreign currency, the reserve will drop to some extent. This connection is very obvious.