Published figures from China’s central bank show that the country’s foreign exchange reserves grew by US$194 billion in the third quarter to US$2.648 trillion, the Wall Street Journal reported. The jump, which was larger than expected, provides ammunition for China’s critics by demonstrating the extent to which it is intervening in currency markets to suppress the value of its currency. "The huge increase last quarter will make it hard for China to argue that its policy interventions are not a major driver of global imbalances," said Mark Williams of Capital Economics. The news comes at an especially inopportune moment for China’s leaders, as they come under intensified criticism for maintaining a suppressed currency in the run-up to a G20 summit in Seoul.
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