As compared to the last quarter of 2014, the Foreign Exchange Reserves For 2015 fell by a massive 79.5 billion dollars with analysts expressing concerns over the economy's diving growth rate

Of late, the Chinese economy has emerged as a major cause of concern with the growth figures being way below expectations. The recent figures about the country's Foreign Exchange Reserves also added to this disappointment. According to reports on China Daily, China's Foreign Exchange Reserves fell by a record 79.5 billion dollars as compared to the numbers registered during last year in the last quarter. State Administration Foreign Exchange released the official figures on Tuesday. According to experts, this clearly points at a capital flow that is much bigger than what was being predicted previously.

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The detailed report also tells us that in 2014, China's Foreign Exchange Reserves stood at a massive 3.84 trillion making it one of the largest pools of the year, which were slightly higher than those of 2013. But the numbers of 2014 are a grave disappointment when compared to these figures. In fact, this will also be the very first time that the State Administration of Foreign Exchange agreed to reworking its calculation just to balance the payments. The reworking was in line with the directives issued by International Monetary Fund.

With this move, China is actually inching closer to include the Yuan in IMF's protection by including it in the Special Rights Basket. Given the situation of the Chinese economy, experts are eagerly looking forward to the final decision that will be issued by IMF by the end of the year. The reports on Noodls also pointed out that the current account surplus increased to 78.9 billion dollars in the first quarter which is big rise when compared to the 67 billion dollars figure of last year. Meanwhile, the financial deficits also went up increasing the strain on the economy. 

TagsChina Financial Policy, China and IMF