China Forex Purchases Rise in May

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, the People’s Bank of China (PBOC) announced Friday.

The figure resulted in a net increase of 66.86 billion yuan in May from April’s forex purchase position of 27.363 trillion yuan, according to the bank.

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.

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

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, according to the General Administration of Customs.

via Xinhua

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.