China’s currency and other economic facts
On Monday last, there were for the first time ever CNY 6.07 needed to buy one USD, because China’s government allowed that the value of its currency increased almost 2.5 % during 2013
In November China’s trade surplus increased 17 % to USD 234 billion. Around USD 100 billion were pumped into the Chinese economy in the three month up to October (net purchases of foreign currency by Chinese banks), the other three months before the number was USD 193 million. All factors that led to a stronger currency, including the reforms announced. In addition there is a tendency of higher interest rates, as yields rise on bonds and interbank loans, also with the aim to take off suppressing credit costs and allowing banks to trade negotiable certificates on deposits. Chinese companies and traders thus borrow money abroad and bring it home, however sometimes illegal by using false invoices. Regulators have an eye on them with the aim of crackdowns on such money flows, but in the past these efforts were not very successful.