Brazil, Russia, India and China, the BRIC countries, are back to talking about creating a unified financial system where they can avoid euro and dollar volatility. This time, a pooling of Central Bank dollars from the countries in case liquidity dried up as the world tracks the West’s crisis momentum.
Regardless of the amount of difficulty involved, the big four emerging markets plus South Africa said earlier this week they [...]
BEIJING (MNI) – China is profiting on its overseas investments, realizing a 32% average annual return during 2004 to 2011, the State Administration of Foreign Exchange said Sunday.
The regulator said China made a $128 billion return on its overseas investments in 2011 alone, the majority of which came from its foreign exchange reserve investments.
The statement followed data showing a negative return of $26.8 billion on the investment income item of [...]
Those with an eye on markets probably haven’t been able to miss that the Chinese stock market is in free fall. Here is some more news that signals that the problems have just started, the shit is hitting the fan:
Contrary to its usual practice, the central bank did not release foreign exchange reserve figures along with money supply and lending data. The bank did not say when those numbers would [...]
Jim Chanos appeared on Bloomberg TV and talking about the European debt crisis and China. Similar to the view here, he is not impressed by the European solution so far, just as Wolfgang Münchau Was Not Impressed, and I Am Not Impressed. Of course, the current rally is not good for bears, but he also thinks that the latest solution has only solve the immediate crisis.
He is also not impressed about China bailing [...]
From Gold Core
Sharp Increase in Central Bank Gold Reserves – South Korea Up 17 Fold & Thailand 15.5% in 2 Months
Gold is higher in all currencies today except for the Swiss franc and is trading at USD 1,629.20 , EUR 1,147.30 , GBP 1,000.20 and CHF 1,270.10 per ounce. Gold’s London AM fix was USD 1624.00, EUR 1145.28, GBP 997.30 (10:41 GMT).
Gold reached new record nominal highs [...]
China remained the largest holder of US treasury despite efforts to diversify its investment of forex reserves.
China’s newly-added foreign exchange reserves since 2003 have lost about $271.1 billion by the end of 2010 as a result of the depreciation of the US dollar, said a senior analyst with the National Development and Reform Commission (NDRC) .
And the country is likely to lose $578.6 billion if the US currency’s [...]
Liu Wei, a director with China’s State Administration of Foreign Exchange, the foreign exchange reserve manager responsible for administering $2.6 trillion in FX reserves, told Caing.com today that “Quantitative easing carried out by the U.S. Federal Reserve could exacerbate global currency interventions, hurt the developed countries and fuel flows of speculative capital into emerging market economies.” Additionally, and contrary to all those who [...]
“BEIJING Oct 27 (Reuters) – China should significantly boost the amount of gold XAU= held in state reserves, a newspaper run by China’s Ministry of Commerce said on Wednesday, citing a local researcher.
Meng Qingfa, a researcher with China Chamber of International Commerce, was quoted by the International Business Daily as saying that China should eventually boost its gold reserves to a level equal to that held by the United States.