Small Exchange: Trump abandons China rhetoric, Pakistan ups foreign reserves and South Korea’s forex deposits hit record high
This week's currency news rounded up.
Trump abandons accusations of Chinese currency manipulation
US President Donald Trump has quelled rhetoric aimed at China regarding the country's alleged manipulation of foreign exchange, according to the Financial Times.
Late last week the US Treasury Department officially declined to continue labelling China as a currency manipulator. This decision has gone a long way to ease bilateral tensions with Beijing.
China's foreign ministry has said that Trump's decision would provide "more balanced growth" in global trade.
"We do not intend to spur export growth through competitive depreciation, and the renminbi has no basis for continuous depreciation," Chinese foreign ministry spokesperson Lu Kang said.
Pakistan boosts forex reserves
The Express Tribune reports that foreign exchange reserves held by the State Bank of Pakistan saw a modest (1.35%) weekly increase during the first week of April 2017.
Foreign currency reserves totalled $16,688.2 million on 7 April, up $222.1 million on the previous week.
Pakistan's central bank received multilateral inflows of $317 million and made payments of $118 million in external debt servicing and other payments.
South Korea's foreign exchange deposits hit record high
Amidst turbulent global and regional political challenges, South Korea's forex deposits rose for the third month in a row, according to the Bank of Korea.
The country's central bank has said that total foreign exchange deposits increased by a record $2.6 billion in March 2017, totalling $70.54 billion.
This dramatic rise was attributed to South Koreans loading up on dollars for investments.
Dollar deposits were up $2.16 billion to $60.14 billion, while yen deposits rose by $110 million to $4.26 billion.
Each week Small Exchange sums up currency news from around the globe and looks into how it impacts exchange rates and options.