Yesterday, the Chinese yuan was set at a record high against the U.S. dollar. It closed at 7.8738 to the dollar in the over-the-counter market, up 0.20% on Friday‘s close of 7.8896.
Statistics showed that at the end of September, China’s international reserves were in the 987.900 billion U.S. dollars, and they would reach the one trillion US dollars mark in the coming weeks.
Holding one trillion U.S. dollar international reserves is not an easy job for China’s banking system. The fluctuations of the U.S. dollar will bring enormous capital losses and economic risks for China.
Fundamentally, the momentum of Chinese Yuan is still on the upside in the foreseeable future. Chinese need to know how to deal with these issues.
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