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China’s forex purchase reached a record 27.430 trillion yuan $4.44 trillion dollars

New York News: Beijing, China

New York News: According to the the People’s Bank of China’s new report today, China’s forex purchase position reached 27.430 trillion yuan (4.44 trillion U.S. dollars) at the end of May,marking the sixth straight month of rises. (PBOC) announced Friday.

The People’s Bank of China showed that forex purchase net increase of 66.86 billion yuan in May from April’s forex purchase position of 27.363 trillion yuan .

The May purchase figure was down from April’s 294.35 billion and the average 315.3 billion during the first four months of the year, indicating a falling trend in the volume of capital inflows, PBOC data showed.China has witnessed accelerated capital inflows since major economies launched monetary easing policies.

According to the bank, net foreign exchange purchases totaled 1.22 trillion yuan in the first three months, more than double last year’s total.

According to the China’s General Administration of Customs. China’s foreign trade volume grew 0.4 percent year on year in May to 345.1 billion U.S. dollars, down from the 15.7-percent gain seen in April.Experts believed that the slow growth of foreign trade is partly due to government rules to curb capital inflows disguised as trade payments.

The State Administration of Foreign Exchange, China’s top forex regulator, announced in May that it would step up controls on capital inflows. These include stricter checks on mismatches between cargo and cash flows and increased oversight of current account transactions, effective from June 1.

By: Kim Long

New York News