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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (25038)	3/7/2005 1:03:57 AM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

In today's press conference with Zhou XiaoChuan, a journalist from Germany asked him that what is the component of China's foreign reserve and whether China is planning to buy more Euro. Zhou did not answer directly but said China’s foreign reserve has usually been managed with the principles of avoiding the risk and containing multiple varieties of currencies. Thus China has usually emphasized on holding certain percentage of its foreign reserves as Euro. Zhou also said China now basically can control the inflow of the international hot money. The Chinese link: news.hexun.com

To: RealMuLan who wrote (25038)	3/7/2005 10:11:04 AM
From: mishedlo	Respond to of 116555

China M2 money supply growth seen at 15 pct, fixed asset investment up 16 pct Saturday, March 5, 2005 4:38:25 AM afxpress.com BEIJING (AFX) - China will see M2 money supply growth of 15 pct this year, up from 14.6 pct last year, the National Development and Reform Commission said The powerful economic planning body said in a report delivered to delegates of the annual session of parliament that narrow M1 growth will also be 15 pct this year compared with a rise of 13.6 pct last year But it said that fixed asset investment this year will be capped at 16 pct, down sharply from the 25.8 pct rise in 2004 "We will use monetary policy instruments flexibly to control monetary aggregates and keep the scale of credit at a reasonable level," the NDRC report said It said that administrative tools, such as land use permissions and credit availability, will be key mechanisms in controlling fixed asset investment this year Last year, the central government slowed approvals of land use and banned certain projects while it directed banks to steer credit away from some sectors that were seen as overheating. Those areas in the past year have included real estate, autos and steel The NDRC noted in its report that too many thermal power plants were being built The NDRC also said that it expected to see retail sales rising by 12.5 pct this year compared with 13.3 pct last year It also said urban registered unemployment would be kept to no more than 4.6 pct this year, up from 4.2 pct last year

To: RealMuLan who wrote (25038)	3/7/2005 10:14:19 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

China will not adjust dollar assets in forex holdings - report Sunday, March 6, 2005 6:51:48 AM forexstreet.com BEIJING (AFX) - China will not adjust the proportion of US dollar assets in its foreign exchange portfolio despite possible moves by other countries, the 21th Century Business Herald quoted a senior foreign exchange official as saying Guo Shuqing, head of the State Administration of Foreign Exchange (SAFE), told the newspaper that he was aware of statements by South Korea's central bank outlining adjustments to its foreign exchange portfolio but ruled out any such action by China He was referring to reports based on statements by the South Korean central bank last month outlining its diversification of foreign exchange reserves into non-state bonds. The reports led to a brief sell-off of the dollar and US dollar-denominated debt before South Korea stated that it was not proposing any fresh sales of dollar assets. South Korea has some 200 bln usd in foreign exchange reserves, with US dollar assets accounting for much of the total But Guo said: "There will not be any major changes in China's foreign exchange reserve portfolio, as our foreign trade is settled mostly in dollars, and we are unlikely to adjust the holding on the currency's short-term market movements." He also said: "Our forex reserves are very diversified already." Last December, SAFE publicly denied reports that it had significantly cut its dollar assets in its foreign exchange holdings. The reports triggered further selling of the dollar But analysts point out that despite the rhetoric, China's appetite for fresh US dollar assets such as treasury bonds is diminishing China had foreign exchange reserves of 609.9 bln usd at the end of last year, up 206.6 bln from the end of 2003, with dollar assets believed to account for some 56 pct

To: RealMuLan who wrote (25038)	3/7/2005 10:17:19 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

Venezuela´s Chavez says the world should ´forget about cheap oil´ Sunday, March 6, 2005 11:37:18 AM forexstreet.com Venezuela's Chavez says the world should 'forget about cheap oil' NEW DELHI (AFX) - Venezuela's President Hugo Chavez said the world should "forget about cheap oil" and get used to high prices "The world should forget about cheap oil ... it won't happen," Chavez told a news conference here, saying that the new price range for oil will remain between 40 and 50 usd "That is the new band for oil," said Chavez, whose country is the only South American member of the Organisation of Petroleum Exporting Countries (OPEC) Chavez, on the second day of a visit to India where he signed a slew of energy and other agreements, said the "world needs a fair price for oil." "We are evaluating how we can stabilise the price of oil (within the 40 dollar to 50 dollar band)," he said He added later, however, he was certain the prices "will go up even further" than the 40-50 usd range, given rising prices of other goods Chavez's comments came after India, which imports 70 pct of its crude oil needs, signed a deal to take a 49 pct stake in Venezuela's San Cristobal oil field

To: RealMuLan who wrote (25038)	3/7/2005 10:23:35 AM
From: mishedlo	Respond to of 116555

Japan Feb forex reserves fall 402 mln usd to 840.56 bln Japan say no currency intervention since March 2004 Monday, March 7, 2005 1:43:13 AM forexstreet.com TOKYO (AFX) - Japan's foreign exchange reserves fell 402 mln usd in February to 840.56 bln usd, the second straight month of decline, the Ministry of Finance (MoF) said Japan's foreign reserves remained the highest in the world for the 63rd straight month. China has the world's second-largest forex reserves, with 609.9 bln usd as of the end of 2004 Because Japan's foreign currency reserves are the world's largest, Japan is being watched closely to see whether Tokyo starts paring its holdings of US-dollar denominated assets to reduce losses if the dollar resumes its slide against foreign currencies in response to soaring US twin deficits The Japanese are major players in the US Treasuries market, and their investment behavior is watched closely for signs of whether foreign investors remain willing to finance the growing US fiscal and current account deficits by buying US government bonds Many analysts have warned any sign of a prolonged decline in Japanese buying of US Treasuries would also certainly cause the dollar to tumble in value against the yen and other major currencies, and US interest rates to rise, possibly imperilling economic growth in the US and internationally. Mindful of the consequences, top Japanese government officials have repeatedly declared in recent weeks that Tokyo has no intention of cutting its exposure to US-dollar denominated assets. Last Thursday the finance ministry released data showing Japanese investors turned net buyers of foreign bonds over the last week of February for the first time in three weeks Japanese investors bought a net 312.1 bln yen of foreign bonds in the week to February 26, the data showed. Japanese had been net sellers the previous two weeks, reducing their holdings during that period by 1.07 trln yen. Foreign exchange reserves consist of securities and deposits denominated in foreign currencies plus International Monetary Fund (IMF) reserves, IMF special drawing rights and gold At the end of February, Japan's foreign currency reserves stood at 820.48 bln usd, down just slightly from 821.20 bln usd at end-January. Japan's IMF reserves stood at 6.52 bln usd, down from 6.63 bln yen at the end of January, SDRs at 2.81 bln usd, up from 2.75 bln usd, and gold at 10.71 bln usd, up from 10.39 bln usd. Japan accumulated the world's largest forex reserves by intervening heavily in the currency market at various times to prevent the yen from appreciating and undermining Japan's export competitiveness. But Japan has not intervened in currency trading for nearly a year now The finance ministry announced on February 28 that Japan had not intervened at all during the period January 28 to February 24, meaning it has not intervened since mid-March last year.