Beijing (CNS)--On July 12, the People's Bank of China (PBOC), China's central bank, released a report on the country's financial statistics for the first half of the year. It was shown that by the end of June this year, China's foreign exchange reserves had reached $3.1975 trillion, 30.3% more than the same time last year.
China's continuously growing foreign exchange reserves have attracted a lot of attention. Analysts attribute much of this growth to the trade surplus. This year has seen China still in a "double surplus" situation. In the first season, commodity trading created a surplus of $20.8 billion, though the international balance of payments dropped since the previous year. Meanwhile, investors favored China over the US and European countries, which stimulated the inflow of foreign capitals, such as US dollars, and added to the reserve.
In the report, newly created credit has been another hotspot. Despite the fact that the PBC has raised the deposit reserve ratio of financial institutions six times this year, the number of loans in RMB still grew by 4.17 trillion yuan ($644.8 billion). The single month of June witnessed 633.9 billion yuan ($98 billion) in loans in RMB, which was 20.7 billion yuan ($3.2 billion) more than last June.
Some analysts indicated that the PBOC will continue to raise the deposit reserve ratio in the third season to curb inflation and manage inflation expectations.
