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From Ambrose Evans-Pritchard:
Currency experts fear a potentially drastic fall in China’s foreign reserves in October, a shock that risks reviving last year’s currency panic and further rattling fragile world stock markets. Capital Economics warns that the headline figure is likely to drop by $100bn, five times as much as in September and the highest level since the global equity rout in January and February. The official data is released tomorrow in Beijing.
…The fairly orderly depreciation of the Chinese currency over the last few weeks has been achieved only in the face of an aggressive currency intervention by the Chinese central bank (PBOC).
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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