China_ throwing $10b bullets at a $1t problem _ the bear traps report blog

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Breaking News: China’s foreign currency holdings remained above $3 trillion in December even as the yuan capped its steepest annual decline in more than two decades.

Better fiction than Harry Potter, China’s foreign exchange reserves fell $41.08 billion to $3.01 trillion, the People’s Bank of China (PBOC) said in a statement Saturday. Exchange rate usd jpy That matched a $3.01 trillion estimate in a Bloomberg survey of economists.

The PBOC is running out of options with FX reserves getting quite low. Eur usd historical data download Of course, as a headline number their FX reserves are high, but as we have stressed to clients, as percentage of the money supply (M2) they are quite low.

In an effort to prevent a global panic within the investment community, China is using emergency measures to keep its foreign-currency stockpile from slipping too far below the key $3 trillion.

We believe as even more confidence is lost, further declines in the yuan will follow.


Pre market dow jones futures Policy makers in China have recently rolled out extra requirements for citizens converting yuan into other currencies after the annual $50,000 quota for individuals reset Jan. Usd rate of exchange 1, more emergency currency controls to come.

Capital is running, NOT walking out of China. Binary code translator As was the case in Q1 2016, China is the big story to watch. Malaysian ringgit to usd As the Yuan gets closer to 7 against the U.S. Gender quiz lgbt Dollar, we believe the Chinese are at an inflection point. Used book stores The PBOC (Peoples Bank of China) tried to get the currency under control by aggressively selling ($200B) U.S. Binary number translator Treasuries in the back half of 2016. Cnn futures markets However, this led yields higher and made the Dollar stronger and ended up hurting China’s FX position. Video editor linux mint In our view, there’s over $1T of losses in China’s highly levered, Lehman like black box, yes their banking system. Usd to aud exchange rate Bottom line: $3T of currency reserves doesn’t go as far as it used to with a Swiss cheese banking system bleeding cash.

China’s recent policy of opening its markets to foreigners is expected to continue this year, but there are questions about how meaningful the change will be amid a clampdown on money leaving the country.

As China loosened controls on its interbank bond market and relaxed rules for offshore investors trading stocks. Html to word converter It also saw nearly $800B head overseas in the first 11 months of last year, according to Bloomberg estimates. Machine learning artificial intelligence Investors sought safety in foreign assets pushing the yuan down 6.6% against the dollar in 2016, the most since 1994.

massive impact on asset classes around the world. Rm to usd As cash pours out of the country the spread between the off shore yuan (CNH) and on shore (CNY) widens. Usd to inr today In an effort to control the beast in the market, China from time to time steps in and strengthens their currency, as you can see above they made a substantial “panic” move last week in an effort to stop the bleeding. Binary arithmetic operations Don’t miss our next trade idea. Usd inr forecast Get on the Bear Traps Report Today, click here

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