China’s Foreign Exchange Market (FEEM) is expected to be up about 9.5 per cent by end-September, according to a report by the World Bank and IMF.
China’s foreign currency markets are expected to fall by about 6 per cent.
China is a major contributor to the global foreign exchange markets, and it has been a key player for decades in the global economy.
The FEEM has risen to $16.7 trillion in 2017, up from $11.7 billion in 2016.
It has been boosted by a rise in Chinese foreign exchange reserves in the first quarter of 2018, which saw the yuan rise by 0.6 per cent, according a report published by China’s central bank last week.
The dollar is a key component of the Chinese economy, and China has been an important investor in other currencies.
The rise in the yuan is a sign that the Chinese authorities are concerned about its long-term value.
The Chinese government is keen to diversify its domestic currency market, which accounts for more than half of the foreign exchange reserve.
The International Monetary Fund has warned that the world’s second-largest economy may need to consider whether to scale back its foreign exchange interventions in order to limit the impact on the Chinese market.
China has also been facing a slowdown in the economy.
In January, the Chinese central bank cut interest rates to near zero, which led to a sharp slowdown in growth.
China’s economy contracted by 0:25 per cent in the fourth quarter of 2017.
The Chinese government has also announced that it will be increasing the number of local currency transactions from two to four billion yuan a day.