Singapore is currently ranked the third largest foreign exchange centre in the world. There are a lot of factors determining this phenomenon. The world doesn’t just revolve around the little red dot. Other countries’ events, the foreign exchange rates play salient roles, as well. The foreign exchange rate is not decided by a person or authority. There’s a wonderful answer on Yahoo! which states that the exchange rate is a massive market. ‘The prices move up and down in response to movements in the price of everything that is bought or sold with money.’ This is how the exchange rate is fixed on. Over the past couple days, there has been a lot of buzz over the foreign exchange rates. Here’s what you need to know.
China’s Yuan for Foreign Exchange Rise
According to xinhuanet, it ‘rose for a second month in September…’ This demonstrates China is experiencing more capital inflow. This is based on the official data released on Monday. In addition, the news website mentioned that China’s total yuan funds outstanding for foreign exchange reached 27.5 trillion yuan at the end of September, up 126.4 billion yuan from August. These figures are taken from the People’s Bank of China, China’s central bank. Experts say that this increase is brought by the stabilization of China’s economy.
India’s Foreign Exchange Reserves Gained 1.51 Billion U.S. Dollars
Jagran Josh reported that India’s foreign exchange reserves gained 1.51 billion U.S. dollars to touch 279.24 billion U.S. dollars for the week ended 11 October 2013. The U.S. dollar notes take the effect of appreciation or depreciation of non-US currencies held in reserve into account. On a slight different note, India’s reserve position with the International Monetary Fund declined by 4.7 million U.S. dollars to 2.19 billion U.S. dollars and the value of the Special Drawing Rights (SDRs) fell by 9.6 million U.S. dollars to 4.43 billion U.S. dollars.
Bank Indonesia Strengthens Foreign Exchange Reserves
Jakarta Post has reported that Bank Indonesia is giving their best to sponge up dollars from its monetary instruments. BI is withdrawing from a situation in order to make room for the currency to float at its market-determined rate. Their attempt to prop up market confidence over the sufficiency of its foreign exchange reserves has proven effective. It further stated that there was an increase of its forex reserves, which had strengthened for two consecutive months to touch US$95.7 billion by the end of last month, rising by a cumulative $3 billion since July.