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Japan:
Second India-Japan strategic dialogue on economic issues
China:
India-Brazil-South Africa to cooperate in health sector
South Korea:
South Korea Gives US Beef The All Clear
India:
Indian government approves re-structured APDRP
Pakistan:
Restoration of Indo-Pak dialogue to push trade
Singapore:
India-Brazil-South Africa to cooperate in health sector
Thailand:
Fastest Growth for Thailand Economy in Six Quarters
Taiwan:
Taiwan Enjoy Expanded Trade Surplus
Indonesia:
Central Bank Chief Of Indonesia Detained
Malaysia:
Malaysia economy grows and banking liberalises
China Money Supply On The Increase In July
by Stewart DouglasChina have today released figures showing an increase in money supply nationwide, leading to increasing fears of inflationary pressures.
The figures released today by the Chinese central bank reflected an increase of in excess of 18.45% on a yearly basis for the month of July.
The money supply in July totalled a highly significant 38.39 trillion yuan, compared to growth of 17.06% annually through last month at 37.78 trillion yuan on the last year.
The increase in money supply is designed to devalue the yuan in global markets, whilst on the flipside it promotes inflation through greater availability of money.
Similarly, it also allows easier access to credit through banks for business and individual lenders, allowing for personal investment and business growth on a rapid scale.
China has come under criticism in recent months from the US government for purposely devaluing the yuan in order to attract more foreign investment, leading to an increase in the US balance of trade deficit.
This has seen Chinese exports to the US grow rapidly over the last few months, with cheap unit prices driven down further by international devaluation.
Nevertheless, the Central Bank of China has not long since increased the cash reserve ratio within which banks must retain sufficient reserves, as a measure for economic control.
The CCR was raised to 12% in an attempt to reduce the money supply and the resulting inflationary pressures.
However with growing imports from foreign economies, more and more yuan is being made available to the economy, causing the rampant inflation the government are so keen to avoid.
The growth in the money supply over the last year has been on par with China’s stellar economic growth, which continues to outstrip any other world economy.
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