China's foreign currency reserves decline

US dollar notes Some currency speculators have moved out of Chinese yuan and into US dollars

Related Stories

China's official foreign currency reserves fell in the last three months of 2011, marking their first quarterly decline since 1998.

Figures from the People's Bank of China showed its reserves had slipped 0.6% to $3.18tn (£2.07tn).

Beijing's stock of foreign currencies is still by far the biggest in the world.

The reserves reflect China's trade surplus as well as investments in China by foreign companies.

Analysts say the fall in reserves may be a sign of speculators moving their money out of the Chinese currency because they expect it to fall against the US dollar.

It also reflects China's narrowing trade surplus, caused by falling demand for Chinese goods among overseas customers hit by the financial crisis.

China's trade surplus narrowed for a third consecutive year in 2011, falling to about $160bn compared with its record high of $295bn in 2008.

The Shanghai Composite Index closed down 1.3% on Friday, accelerating its losses after the reserve figures were released.

More on This Story

Related Stories

From other news sites

* May require registration or subscription

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • RihannaCloud caution

    After celebrity leaks, what can you do to safeguard your photos?


  • Cesc FabregasFair price?

    Have some football clubs overpaid for their new players?


  • Woman and hairdryerBlow back

    Would banning high-power appliances actually save energy?


  • Rack of lambFavourite feast

    Is the UK unusually fond of lamb and potatoes?


  • Members of staff at James Stevenson Flags hold a Union Jack and Saltire flag UK minus Scotland

    Does the rest of the UK care if the Scots become independent?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.