The Increase In Foreign Exchange Accounted For 21%&Nbsp, While The Foreign Exchange Bureau Said That The Hot Money Was Not Yet In Scale.

China's foreign exchange administration (hereinafter referred to as the "foreign exchange bureau") said yesterday that the "two remittance reform" of the renminbi, 1st anniversary, will gradually increase in the next stage.

The foreign exchange bureau made the above statement in the annual report 2010 of the State Administration of foreign exchange published yesterday.

In the report, the foreign exchange bureau again stressed the monitoring of "hot money", but called it "

Just yesterday, the central bank announced that the newly increased foreign exchange accounted for 376 billion 414 million yuan in May, up 21% from the previous month.

Analysts pointed out that this shows that there is still "hot money" signs of inflow, the central bank's liquidity pressure has not been reduced.

According to the data released by the central bank yesterday, as of the end of 5, China's foreign exchange accounted for 243907 billion yuan. In May, foreign exchange accounted for 376 billion 400 million yuan, compared with 310 billion 700 million yuan in April.

Foreign exchange is the national currency that the central bank buys foreign exchange assets, and the increase in foreign exchange will directly increase the base money. Through the money multiplier effect, the RMB in circulation will increase rapidly.

Since the beginning of this year, China's foreign exchange holdings have been showing growth trend, and the total foreign exchange accounted for more than 1 trillion and 800 billion yuan in the first 5 months.

Among them, the increment in March has reached 407 billion 900 million yuan, reaching a new high in recent years.

Although foreign exchange accounted for 310 billion 700 million yuan in April, the market fell by about 24%, but the absolute value is still higher than last year's average level.

In fact, the increase in foreign exchange accounts is not difficult to understand.

What is obvious is that since May, the RMB has reached a new high against the US dollar, and the path of appreciation is obvious.

As of yesterday, the RMB exchange rate rose to 5.085% against the US dollar in the past two years.

Combined with the trade surplus in May, the industry is still worried about the scale of the influx of hot money.

In this regard, the foreign exchange bureau's yesterday's report focused on the special action against the "hot money" in the form of a column, and admitted that there was a "hot money" illegal influx phenomenon in China, but it has not yet entered the scale.

The foreign exchange bureau said that "hot money" usually dispersed and infiltrated in the way of "ants moving" and had not yet found the large-scale influx of international "financial predators". In the future, it will continue to maintain a high pressure against illegal capital inflows such as hot money and strengthen monitoring and early warning of cross-border capital flows.