New Foreign Reserves, New Month High &Nbsp, Hot Money Accelerated Inflow

Data released by the people's Bank of China yesterday showed that as of the end of 9 this year, China

Foreign exchange also confirms the trend of large inflow of funds from another angle.

According to the data released by the central bank yesterday, China's foreign exchange increased by 289 billion 565 million yuan in September, an increase of 19.19% over August, which is more than 286 billion 300 million yuan in April this year.

The rapid increase in foreign exchange reserves is equivalent to a large number of base money, and the Central Bank of China has to increase the intensity of its efforts to offset the pressure from the increase in the base money. The differential reserve ratio for 6 banks was related to this.

Foreign direct investment and trade surplus are the two largest sources of foreign exchange reserves. FDI has remained stable since the beginning of this year, and the trade surplus has also increased significantly, resulting in an increase in foreign exchange reserves. However, after deducting these two factors, there are still quite a few foreign exchange reserves.

First, the euro appreciated substantially against the US dollar in the three quarter, bringing the increase in US dollar denominated foreign reserves.

E Yongjian, a financial analyst at Bank of communications Financial Research Center, believes that the appreciation of the euro in the three quarter to the US dollar is more than 10%, which is an important reason for the growth of foreign exchange reserves.

Two, the three quarter cross-border arbitrage funds entered the territory of our country.

The international balance of payments report recently released by the State Administration of foreign exchange has pointed out that since the second half of 2009, the interest rate gap between China and the United States has been expanding and the appreciation rate of RMB against the US dollar has gradually resumed.

Due to the double income of spreads and remittance differences, the scale of cross-border dollar arbitrage pactions of domestic market entities began to expand, exacerbating the fluctuation of China's foreign exchange receipts and payments.

Standard Chartered Hongkong's recent report said that Asia will face a new round of capital inflow and the risk of rising asset prices will increase.

More market volatility and higher currency and asset prices are expected in the future.

In response to the impact and impact of hot money inflows on China's economy, the State Administration of foreign exchange has said that the foreign exchange administration will continue to maintain a high pressure strike against the "hot money" movement, focus on blocking regulatory loopholes, give full play to the joint efforts of cross sectoral supervision, crack down on all kinds of illegal foreign exchange trading activities, and earnestly safeguard the foreign exchange policy environment for the sustainable development of foreign-related economies.