Chinese Yuan 12 month Forward
Official data released on Tuesday showed China’s foreign exchange reserves jumping by $129 billion in the first quarter, to an all-time high of $3.95 trillion. The Chinese build reserves by intervening to weaken the Yuan against the US dollar. US Treasury officials responded by verbally reprimanding the Chinese about free market forces, although they stopped short of labeling the country a currency manipulator. It appears as though the harsh words didn’t frighten the People’s Bank of China, as the Yuan traded lower against the US Dollar yesterday even though Chinese GDP data came in stronger than expected.
(Source: GBI)
