China: Chinese yuan strengthens slightly
October 16, 2011
By 15 October, the Chinese yuan (RMB or CNY) traded at CNY 6.39 per USD, which represented a slight 0.2% appreciation in nominal terms compared with the previous month. The yuan has appreciated an accumulated 3.3% versus the USD this year and, at the current level, is trading 3.8% stronger than the same day last year. Meanwhile, the People's Bank of China (PBOC) announced that its foreign exchange reserves barely grew in the third quarter mainly due to a weakening euro and rising risk aversion in international markets, which slowed capital inflows. In the third quarter, the foreign exchange reserves added a mere USD 4.2 billion (Q2: USD 152.8 billion increase), rising to USD 3.2 trillion. Consensus Forecast panellists expect foreign-exchange reserves to reach USD XX trillion by the end of this year. For 2012, the panel sees international reserves at USD XX trillion by the end of the year.