Hot money inflows soar 26%

19 Aug

China’s foreign exchange regulator said that speculative “hot money” inflows are putting pressure on the economy, with the volume of illegal currency exchanges rising by 26% in the first half of the year, Caixin reported. The State Administration of Foreign Exchange (SAFE) announced that 1,800 illegal exchange operations have been shut down so far this year, involving more than US$16 billion worth of currency. The organization said it will continue to monitor hot money inflows and crack down on illegal currency conversions. China’s current account surplus hit US$69.9 billion in the second quarter, while its capital account surplus rose to US$67 billion. The country’s foreign exchange reserves, managed by SAFE, increased by US$136.9 billion over the same period to reach US$3.2 trillion.

Leave a comment

Posted by on August 19, 2011 in Finance


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: