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

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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