China’s reserve assets held in foreign currencies, the world’s largest war chest, have been stuck between US$3.0 trillion and US$3.2 trillion since 2017 because the People’s Bank of China (PBOC) appears to have largely stopped using them in market intervention to manage the yuan’s value. -Photo: EPA-EFE China’s reserve assets held in foreign currencies, the world’s largest war chest, have been stuck between US$3.0 trillion and US$3.2 trillion since 2017 because the People’s Bank of China (PBOC) appears to have largely stopped using them in market intervention to manage the yuan’s value. -Photo: EPA-EFE
China’s reserve assets held in foreign currencies, the world’s largest war chest, have been stuck between US$3.0 trillion and US$3.2 trillion since 2017 because the People’s Bank of China (PBOC) appears to have largely stopped using them in market intervention to manage the yuan’s value. -Photo: EPA-EFE

China’s foreign exchange reserves have been remarkably stable. Puzzled economists wonder why

  • China’s reserve assets held in foreign currencies, the world’s largest war chest, have been stuck between US$3.0 trillion and US$3.2 trillion since 2017
  • Some economists say China may be using a new tactic to manage the yuan’s exchange rate by allowing bigger capital outflows from the country

Topic |   Currency war
China’s reserve assets held in foreign currencies, the world’s largest war chest, have been stuck between US$3.0 trillion and US$3.2 trillion since 2017 because the People’s Bank of China (PBOC) appears to have largely stopped using them in market intervention to manage the yuan’s value. -Photo: EPA-EFE China’s reserve assets held in foreign currencies, the world’s largest war chest, have been stuck between US$3.0 trillion and US$3.2 trillion since 2017 because the People’s Bank of China (PBOC) appears to have largely stopped using them in market intervention to manage the yuan’s value. -Photo: EPA-EFE
China’s reserve assets held in foreign currencies, the world’s largest war chest, have been stuck between US$3.0 trillion and US$3.2 trillion since 2017 because the People’s Bank of China (PBOC) appears to have largely stopped using them in market intervention to manage the yuan’s value. -Photo: EPA-EFE
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