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PBOC: China FX reserves fall under USD 3 trillion for first time since Feb 2011

The Chinese central bank, PBOC, published its latest data on the country’s fx reserves for Jan-end.

Key Details:

China FX reserves end-Jan USD 2.998trln vs 3.011trln prev

FX reserves fall under USD 3 trillion for first time since Feb 2011

Meanwhile, PBOC FX regulator, SAFE, came out on the wires, justifying the drop in Jan reserves.

Key Headlines:

Reserves are ample

Provision of fx to market main reason for drop in reserves in Jan

Fluctuation normal given complicated internal, external economic environment

Smaller reduction in fx reserves in Jan shows cross-border capital outflows slowed

ECB’s Villeroy: US Govt should back off from making comments on FX

In an interview with Sole 24 Ore, ECB governing council member and Bank of France head Villeroy, responded to recent comments by US trade adviser that
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EUR/USD tumbles to lows near 1.0660

EUR/USD has quickly dropped to fresh daily lows in the 1.0660 area in response to an acceleration in the demand for the US Dollar. EUR/USD weaker on
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