China's forex reserves post slowest quarterly growth in 11 years

The People’s Bank of China (PBoC) announced that China’s foreign exchange reserves increased US$7.2 billion to US$2.545 trillion in the second quarter of 2010, Bloomberg reported. The figure constitutes the smallest quarterly increase in China’s foreign reserve holdings since 1999. China’s foreign exchange reserves experienced a 2% decline in the month of May, as expectations of a rising yuan seemed slim. However, some analysts warn that recent appreciation in the value of the yuan could lead to significantly larger increases in coming months.