China Seen Keeping Reserves Near $3 Trillion to Avoid Alarm
- Stockpile is seen holding above key level for December
- Credit Suisse, StanChart say level could be breached soon
China's Yuan Depreciation an Ongoing Trend: Cole
China may take measures to keep its foreign-currency stockpile from slipping too far below the key $3 trillion mark to avoid hurting investor confidence and spurring further declines in the yuan, according to economists at major banks.
The nation’s monetary authority may borrow dollars in the swaps market to temporarily keep the reserves above $3 trillion, according to China International Capital Corp. Policy makers will also try and limit the amount of money that companies can move overseas through steps such as cracking down on suspicious overseas acquisitions, said Ding Shuang, chief China economist at Standard Chartered Plc in Hong Kong. He said the level may have dropped to $2.99 trillion last month.