Reduction of Foreign Reserves Might Become A Periodic Trend
ANBOUND
Multiple factors have led to the reduction of China's foreign reserves. ANBOUND research team believes that Renminbi will have to bear the pressure of depreciation in the future since American economy is obviously recovering, appreciation of the US dollar has sufficient momentum and the depreciation pressure on other main currencies still exists. The appreciation of the US dollar, the weak exportation data, as well as the obvious foreign investment trends will make further reduction of China’s foreign reserves a periodic trend.