“Beijing accumulated the biggest foreign exchange reserves in the world over the last couple of decades, by running huge trade surpluses and keeping the yuan’s value low. Beijing’s forex reserves had stood at a mere $100bn in 1996, but the country’s emergence as the world’s biggest exporter helped it overtake Japan as the biggest holder of foreign exchange in ten years. In 2013, the forex reserves saw a jump of $510bn, compared with $130 billion net increase in the previous year. Barclays Capital said in a research note the massive rise in China’s foreign reserve came on the back of capital inflows amid large interest rate differentials and a wide trade surplus.”
http://www.ibtimes.co.uk/chinas-dollar-trap-foreign-exchange-reserves-hit-3-8tn-1432428
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