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China joins global central bank gold rush as its foreign exchange reserves stabilise

China has joined a global central bank gold rush in the last two months by increasing its official gold reserves, even though the purchase remains modest compared to the volume of the mainland’s foreign exchange reserves, according to data released by the People’s Bank of China on Monday. The country’s gold reserves rose slightly to 59.94 million ounces at the end of January from 59.56 million ounces at the end of December 2018, marking a second straight month of increase. The latest gold purchase by the world’s second-largest economy came…

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The Federal Reserve’s worrying slide from villain to pushover

Spare a thought for Jerome Powell, the chair of the US Federal Reserve. After his overly hawkish tone was blamed for the dramatic sell-off in the stock market last December, he has since been treading a fine line between placating financial markets and responding to the continued strength of the US economy. While investors have been hanging on central bankers’ every word since the 2008 financial crisis, as successive rounds of quantitative easing boosted asset prices and suppressed volatility, Powell faces intense scrutiny. Not only is the Fed the world’s…

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Vietnam 

SBV building currency reserves – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

Viet Nam News HÀ NỘI – The State Bank of Việt Nam (SBV) has so far this year bought more than US$1 billion from commercial banks to build up the nation’s foreign currency reserves. The latest report from Saigon Securities Co’s Retail Research cited SBV Governor Lê Minh Hưng as saying that the central bank could purchase another $1-2 billion in the next few weeks thanks to the available US dollar supply in the domestic market. Besides increasing the country’s forex reserves, the purchase also helps increase…

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China 

China’s foreign exchange reserves rise for second month as yuan expectations stabilise

China’s foreign exchange reserves rose modestly in December for the second consecutive month as sentiment about the yuan exchange rate remained stable. China’s foreign exchange reserves, its accumulation of assets valued in foreign currencies, rose by US$11 billion in December to US$3.073 trillion, according to data released on Monday, slightly above median forecast of US$3.072 trillion in a Bloomberg survey. Many economists view the change in China’s reserves as a gauge of the People’s Bank of China’s (PBOC) intervention in the foreign exchange market to support the yuan exchange rate…

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China 

Federal Reserve’s former chair Yellen expects three to four US rate increases over the next year

The US Federal Reserve will continue the current pace of normalising its monetary policy because the American economy is doing “exceptionally well,” though this will create a tougher economic environment for emerging markets including China, its former chair said on Tuesday. “Normalisation of both short rates and the balance sheet are proceeding smoothly and, with the economy performing so well, Chair Powell and the [Federal Open Market Committee (FOMC)] are continuing the process of removing monetary accommodation to return the federal funds rate to a neutral stance,” Janet Yellen said…

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China 

China’s forex reserves hit 18-month low as trade war piles pressure on yuan

China’s foreign exchange reserves fell more than expected in October to a 18-month low, suggesting a gradual pickup in capital outflow pressure amid the trade war with the United States. The reserves fell US$33.93 billion in October to US$3.053 trillion, versus a decline of US$22.69 billion in September, central bank data showed on Wednesday. A Bloomberg survey of economists forecast a drop of US$28.53 billion to US$3.06 trillion. The modest depletion in the reserves comes as the yuan has lost 10 per cent of its value to the US dollar…

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China 

China’s foreign exchange reserves fall more than expected to $3 trillion

China’s foreign exchange reserves fell more than expected in September to a 14-month low as the yuan weakened further against the dollar amid mounting trade tension with the United States. Reserves fell US$22.69 billion in September to US$3.09 trillion, the biggest drop since February, compared with a decline of US$8.23 billion in August, central bank data showed on Sunday. Economists polled by Reuters had expected reserves to drop by US$5 billion to US$3.1 trillion. The yuan fell for the sixth straight month in September as the dollar remained buoyant, suggesting…

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