Forex re­serves up again, top $3 tril­lion

China Daily (Hong Kong) - - BUSINESS -

level in De­cem­ber, the yuan’s per­for­mance against the green­back has been steady after the US cur­rency lost its up­ward mo­men­tum.

Wang Youxin, an econ­o­mist at Bank of China, said the cen­tral bank does not need to de­plete its re­serves in or­der to sta­bi­lize the yuan.

More bal­anced cross-bor­der flows will also be sup­ported by the gov­ern­ment’s ef­forts to open up the do­mes­tic cap­i­tal mar­ket, ac­cord­ing to Cheng Shi, ICBC In­ter­na­tional Re­search Di­rec­tor, re­fer­ring to mea­sures such as the main­land-Hong Kong bond con­nect pro­gram.

“The pro­gram is not some­thing that has only sym­bolic mean­ing. It will gen­er­ate longterm pos­i­tive im­pact,” he said.

“An ex­pected in­crease in for­eign cap­i­tal in­flows will help off­set do­mes­tic cap­i­tal out­flows,” he said.

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