PBOC: Position in Forex Purchase Decreased CNY 60.6 Billion in April

Source: People's Bank of China , ChinaScope Financial (Data)

+       According to data released by the People’s Bank of China on May 16, the Chinese banking systems’ forex purchase position was CNY 25.6 trillion at the end of April, down CNY 60.6 billion month-on-month.

+       This is the first month with decrease in the forex purchase position this year. In Q4 2011, the forex purchase position decreased for three consecutive months.

+       Slower growth in exports, and less FDI and hot money inflow are driving the downward trend in forex purchase. Meanwhile, foreign exchange demand might pick up if CNY depreciation expectations emerge.

Position in forex purchase declined by almost CNY 61 Bn in April.

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