China FX reserves end-July data was out yesterday
Via HSBC:
- China's FX reserves increased by USD23.9bn in July to USD3.08trn, the sixth consecutive rise.
- excluding the translation effects on reserves, it appears the PBoC bought around USD2.2bn in the month.
- FX reserves have been on a rising trend, largely as a function of the translation effects of a weaker USD, but the net purchases in July may reinforce the market's positive view of the RMB.
So, I'm sorta wondering why the PBOC bought USD on the month - politics?
Dunno.
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Anyway,