Chinese FX reserves data published a short while ago 7 Jan
- total reserves now near 6-year lows
- gold reserves USD 67.878bln vs 69.785bln prev
- gold reserves 59.24mln troy oz vs 59.240mln prev
A drop in reserves of $41bln, albeit less than the $51bln expected versus a $69bln drop in November and the 6th straight month of declines.
The PBOC has now been forced to reduce its reserves by half a trillion USD since Aug 2015 after it devalued the yuan in a surprise move.
Plenty of fun and games this past week for the offshore and onshore yuan with o/n depo rates surging above 95% at one point.
Yesterday the PBOC hiked CNY by the biggest amount in 11 years vs USD and the onshore pair closed at 6.9230. The Chinese MOFCOM also had this to say on outflow curbs.
Some analysts estimate it needs to retain a minimum of $2.6trln to $2.8trln under the IMF's adequacy measures.
Adding to pressure on the yuan is the Trumpster's vow to call China out as a ccy manipulator on his first day in office, plus his threats to impose huge tariffs on imports of Chinese goods.
Reuters has more here
I have to head out now as the hallowed Hall beckons once again.I wish you all a peaceful and enjoyable week-end. Thanks as always for your wonderful support.
