trade deficit

A new record as Chinese foreign exchange reserves hit $2,450bn – but the rate of increase is slowing, relative to last year.

China already has by far the world’s largest foreign exchange reserves (see comparison). A slowdown has happened before, and did not prevent subsequent growth: during late 2008 and early 2009 reserves were stagnant, actually decreasing in some months. 

Simone Baribeau

It’s not often that the US’s two gaping deficits make the news the same day, so today we’re able to have our fill of gap developments (though, we’re unlikely to be much closer to filling the gaps themselves.)

This morning, in a letter to Tim Geithner, treasury secretary, and Gary Lock, commerce secretary, 130 members of Congress asked for action on “currency manipulation” in China.