https://www.forex-news.com/
Forex-News has been the world leading economy news website since 2005. It has been a joyful path full of changing variables in this changing world. During the last three years we have also covered some of the most important news regarding Bitcoin and other cryptocurrencies. Wherever the news are, we are there.
Bitcoin
$13,218.00
-75.99
Ethereum
$381.95
-10.04
Litecoin
$53.66
-2.72
DigitalCash
$65.92
-2.35
Monero
$120.13
-6.78
Nxt
$0.01
0
Ethereum Classic
$5.32
-0.19
Dogecoin
$0.00
-0

Foreign exchange reserves in China rise

4


The global pandemic has been unreasonable with the Asian giant. Because being the epicenter of the disease, the accusatory sentiment of investors stalks the country. However, China’s foreign exchange reserves are on the rise after a gloomy period in the Forex market.

Added to this, China’s tensions with the United States did not promise that the Asian currency would perform well. This goes beyond the certain peaks of good performance that investors have been handling in operations.

However, political tensions and the global crisis seem to weigh down on China. Well, this is how they have achieved that the foreign exchange reserves register a significant increase.

A rising streak of up to 4 months in foreign exchange reserves

The Asian giant continues to be noted in the midst of a rise in tensions with the United States.

Well, its foreign exchange reserves, the largest in the world, grew at a much higher rate than expected in July. In turn, gold reserves benefited from a good performance as a safe haven asset.

The country’s foreign exchange reserves expanded to $ 3.1544 trillion at the end of July, from $ 3.1123 trillion at the end of June, official data showed on Friday.

The amount increased by $ 42.1 billion, or 1.4 percent, since the end of June, according to the State Administration of Foreign Exchange (SAFE).

, Foreign exchange reserves in China rise, Forex-News, Forex-News
Foreign exchange reserves in China show a 4-month rise, promising a possible improvement in the Yuan in the Forex market. Source Trading Economics

The increase in foreign exchange reserves was the result of multiple factors, including exchange rates and fluctuations in asset prices, said Wang Chunying, a SAFE spokesman.

“As major economies stepped up fiscal stimulus and maintained flexible monetary policies, non-dollar currencies strengthened, and overall asset prices in these countries rose”said Wang.

From these factors it is clear why China’s foreign exchange reserves hit a four-month upward streak in July.

Since, apparently, the Asian country made great strides in planning for COVID-19 control and social and economic development. In addition to the good handling of international political tensions.

Is the Chinese Yuan now a safe currency?

Although more has been the positive news from China regarding the Yuan. Some analysts believe that the figures that the Chinese communist economic bureau provides abroad cannot be fully trusted.

You have to take these data with figures and analyze well future results in the Forex market.

Despite the achievements that China made in coordinating COVID-19 control and social and economic development, the international economic and financial situation remains dire and complex, with instabilities and uncertainties still prominent, Wang said.

In this way, you can see that the Asian giant has managed to handle the crisis situation in a correct way. However, much uncertainty remains in the air, and in this way, it directly affects the Chinese Yuan.

Will there be a speedy recovery in the Chinese economy that allows a rise in the Chinese Yuan? Let us know your thoughts in the comment box.



Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More