Understanding China’s Forex Reserves.docVIP

Understanding China’s Forex Reserves 　　Statistics issued by Chinas central bank in early February revealed that China’s foreign exchange（forex） reserves stood at $2.9982 trillion at the end of January， a drop of $12.3 billion compared to the previous month. Upon receiving the data， some analysts expressed concern， claiming that Chinas forex reserves had breached the psychological threshold of $3 trillion. The so-called “$3 trillion psychological threshold，”however， is neither a scientific nor an accurate expression， as a countrys forex reserves are not a fixed number but something that k