Friday, November 30, 2007

Chinese Reserves

FT.com looks at the slowing pace of Chinese reserves.
"However, the monthly increase represented the smallest rise since September 2006. Indeed, after rising at between $40bn and $50bn per month in the first seven months of this year, Chinese foreign exchange reserves rose by just $23bn in August and $24bn in September"


The Chinese continue to print yuan and exchange it for US dollars. It is a step forward that the Chinese are developing a diversified portfolio. However, it does not remove the impression that their saving is too high.

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