China's forex reserves pass 3 trillion USD for first time
China's foreign exchange reserves exceeded the mark of 3 trillion U.S. dollars for the first time at the end of March 2011, representing an increase of 24 percent from a year earlier and maintaining its top position around the world, according to data released by the central bank on April 14.
The foreign exchange reserves increased by 197 billion U.S. dollars in the first quarter.
China's foreign exchange reserves were up by as high as 197 billion U.S. dollars in the first quarter of 2011 from 2.9 trillion U.S. dollars at the end of 2010, with 84 billion U.S. dollars in January, 60 billion U.S. dollars in February and 53 billion U.S. dollars in March.
According to the method released by the State Administration of Foreign Exchange (SAFE) for estimating the amount of "hot money," the flow of "hot money" is a result of subtracting the trade surplus, a net inflow of foreign direct investments (FDI) and overseas investment returns of the foreign exchange reserves from the increment in the foreign exchange reserves.
China recorded 1 billion U.S. dollars of trade deficit for the first quarter and 18 billion U.S. dollars of FDI for the first two months, the combined amount of which was 180 billion U.S. dollars lower than the 197 billion U.S. dollars of the quarterly increment in the foreign exchange reserves. This marks that the aggregate amount of FDI, overseas investment returns and "hot money" reached 180 billion U.S. dollars in March.
Experts said that given the limited amount of capital inflows, the surge in the foreign exchange reserves in the first quarter was the result of too much "hot money" inflow. The speculation on further RMB appreciation is fueling the "hot money" inflow.
Furthermore, the amount of gold reserves among China's foreign exchanges reserves remained unchanged at the end of the first quarter, standing at 34 million ounces.
By People's Daily Online
! Weekly review
The foreign exchange reserves increased by 197 billion U.S. dollars in the first quarter.
China's foreign exchange reserves were up by as high as 197 billion U.S. dollars in the first quarter of 2011 from 2.9 trillion U.S. dollars at the end of 2010, with 84 billion U.S. dollars in January, 60 billion U.S. dollars in February and 53 billion U.S. dollars in March.
According to the method released by the State Administration of Foreign Exchange (SAFE) for estimating the amount of "hot money," the flow of "hot money" is a result of subtracting the trade surplus, a net inflow of foreign direct investments (FDI) and overseas investment returns of the foreign exchange reserves from the increment in the foreign exchange reserves.
China recorded 1 billion U.S. dollars of trade deficit for the first quarter and 18 billion U.S. dollars of FDI for the first two months, the combined amount of which was 180 billion U.S. dollars lower than the 197 billion U.S. dollars of the quarterly increment in the foreign exchange reserves. This marks that the aggregate amount of FDI, overseas investment returns and "hot money" reached 180 billion U.S. dollars in March.
Experts said that given the limited amount of capital inflows, the surge in the foreign exchange reserves in the first quarter was the result of too much "hot money" inflow. The speculation on further RMB appreciation is fueling the "hot money" inflow.
Furthermore, the amount of gold reserves among China's foreign exchanges reserves remained unchanged at the end of the first quarter, standing at 34 million ounces.
By People's Daily Online
! Weekly review
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