Why has China's foreign exchange reserves been reduced?

China’s foreign exchange reserves have been reduced from the peak of $3.99 trillion in July 2014 to the current low of $3.2 trillion, a decrease of 20% in just two years. 
I don't understand. In the past two years, China has never had a trade deficit in any month. The overall surplus has not decreased before 2014, and even the trade surplus in some months has reached a record high. January 2016). 

Then the question is coming. Since there are so many surpluses and China has foreign exchange control measures, what is the reason why China’s foreign exchange reserves have fallen so fast? Is China’s investment in foreign countries far more than foreign direct investment in China?



Everyone knows that most of the reduction in foreign exchange reserves is used to maintain the stability of the RMB exchange rate. The key issue is that we must spend money to stabilize the exchange rate. Reverse reasoning, assuming instability, the RMB exchange rate fell by 15% a day. What is the result? 

China's oil, soybeans, iron ore, grain and other external dependence is very high. The fall of the renminbi means that the price of these things rises. Simply put, it will bring about input inflation . If the exchange rate of the RMB against the US dollar falls by 15% in the morning, I estimate that the inflation will be more than 8% in minutes. 
In order to fight inflation, the actual interest rate must be raised, the minimum calculation, an increase of 3% . 
As a result, 
1, the real estate market, interest increased from 4.9% to 7.9%, then the buyers can afford such a high interest rate? Speculative buying of people who buy houses is certain. Investing in housing purchases depends on the capital chain. 

2. Bond market, 60 trillion bonds, interest rates rose by 3%, 5-year bonds basically fell by 15%, which means that the entire bond market will fall by 9 trillion, can the bank withstand such a serious loss? 

3. Corporate loans, 80 trillion corporate bank loans, interest rates rose 3%, and 2.4 trillion yuan a year, we consider all state-owned enterprise profits (2.3 trillion in 2015) to deal with new interest, then all The companies have become zero profits.

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