China’s Foreign-Currency Reserved Hit Record Levels

Dollar Yuan

Data accidentally released on the Treasury Department’s Website showed that China’s holding of U.S. Treasuries climbed $12.2 billion to an unprecedented $1.37 billion.

The official report is scheduled for release at 9 a.m. tomorrow morning in Washington, but has been inadvertently posted on the Treasury’s website. The figures also show an increase in Japan’s holdings by $12 billion, bringing the Japanese total to $1.186 trillion.

China has shown great appetite for foreign-exchange reserves lately, and has reportedly reached the record amount of $3.82 trillion by the end of December. Inflow of Capital and interventions to restrict profits in the yuan have contributed to China’s amassing of currency holdings that equal a third of the global total.

It is expected, however, that China will slow down its pace of foreign-exchange reserve gathering on account of the Federal Reserve’s monetary tapering programme.

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