China's foreign-exchange declines while money supply grows

Note: This section contains information in English only.
Source: Bloomberg Businessweek

The People's Bank of China reported today it extended CNY 919.8 billion home-currency loans. Money supply, M2, increased by 13.6%, though the central bank wants to achieve increase of 14% by the end of the year. However, foreign-exchange reserves, the largest in the world, dropped from USD 3.305 trillion in March to USD 3.24 trillion in June. Chinese economy's expansion slowed down from 8.1% in the first quarter of 2012 to 7.7% during the last three months.

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