Fall in reserves due to currency fluctuations – PBOC

FXStreet (Mumbai) - The People’s Bank of China (PBOC) on Tuesday blamed the fluctuation in the CNY exchange rate for the drop in its reserves.

Key Quotes

“China has ample Fx reserves, to maintain a current account surplus in the mid-long term”

“PBOC provided the FX market with liquidity during August. The rise and fall of reserves is normal amid yuan rate reform.”

“Reserve requirement on FX forwards is not capital control. PBOC implemented controls on FX forwards due to speculative trading.”

“Economy can still maintain medium to high speed growth in the long term.”