Forex riddle: China’s foreign reserves fall for 4 straight quarters
http://atimes.com/2015/07/forex-riddle-chinas-foreign-reserves-fall-for-4-straight-quarters/
Forex riddle: Chinas foreign reserves fall for 4 straight quarters
By Asia Unhedged on July 31, 2015
Chinas foreign exchange reserve has been falling for four consecutive quarters, the longest period since 1998, but economists and analysts dont know why.
For the second quarter, the largest forex reserve in the world fell $36.2 billion to $3.69 trillion, down from a record high of $3.99 trillion in the same period a year ago, according to official data.
This follows the first quarters $113 billion decline in the central banks forex reserves. In the fourth quarter of 2014, the reserves fell $47.7 billion, following a $105.2 billion drop in the third quarter.
Many analysts say that foreign investors are pulling money out because they dont have confidence in the economic outlook, said independent Chinese newsite Caixin. The rising US dollar isnt helping either.