FOREIGN RESERVES REMAIN FLAT IN OCTOBER

2014/11/14

From:Macau Business

Macau’s foreign exchange reserves dropped slightly by 0.3 percent to MOP128.8 billion (US$16.1 billion) in October over that of the month prior.
Preliminary data from the Monetary Authority of Macau released yesterday shows that the reserves decreased from September’s MOP129.2 billion.
The monetary authority also advised that the amount of exchange reserves in September (data for October not yet available) represented 13 times the money in circulation in Macau, also known as M2, that aggregates all notes and coins plus bank deposits and savings.
Earlier this year, Macau’s foreign exchange reserves dropped in March to the lowest level since its separation from the fiscal reserves.
At the time, the money in international currencies held by the central bank fell MOP7.8 billion in one year and half a billion in one month.
The March reading was also the lowest figure since February 2012 when the government separated the fiscal and exchange reserves and started to manage them separately. March’s decline in exchange reserves could have been due to the devaluation of the currency in which the assets held by authorities are denominated or by government selling. Central banks park external currency in their coffers to manage the exchange rate or protect the financial system against crises or market crashes.

Copyright@Macau Business