China: Actively selling official reserves, once again – TDS

FXStreet (Delhi) – James Rossiter, Senior Global Strategist at TD Securities, notes that there was less laser focus on China through September and the direct market turbulence died down and attention shifted to the Fed, but with the tight trading of onshore-offshore yuan, there is an expectation that China was once again actively selling reserves to manage the currency.

Key Quotes

“The administrative measures they have implemented will limit the need for some of this intervention over time, but there has been a structural shift that is likely to entail further selling over time of Chinese and other EM reserves.”

James Rossiter, Senior Global Strategist at TD Securities, notes that there was less laser focus on China through September and the direct market turbulence died down and attention shifted to the Fed, but with the tight trading of onshore-offshore yuan, there is an expectation that China was once again actively selling reserves to manage the currency.

(Market News Provided by FXstreet)