Business News Asia
Xinhua news agency reported that China’s foreign exchange reserves fell by 0.88%, or $28.5 billion, to $3.2216 trillion at the end of January.
Commenting on the information, Wang Chunying, deputy director of SAFE, said, “The forex market has maintained stable operation in January, with domestic supply and demand for forex remaining basically balanced.”
The decline is said to be due to the rise in the U.S. Dollar Index, which has strengthened recently. The reduction of QE along with possible interest rate hikes by the U.S. Federal Reserve but also China’s interest rate cuts make the U.S. dollar look stronger.
In addition, China continues to struggle with COVID outbreaks in many places, which is causing problems for the country.
Japanese household spending fell for the fifth month in a row today.
Japan’s Ministry of Internal Affairs and Communications reported today that household spending in Japan fell 0.2% in December from a year earlier, marking the fifth straight month of decline.
Average spending by Japanese households with two or more members fell to 317,206 yen ($2,700) in December.
In 2021, average monthly spending by Japanese households will rise by 0.7%, the first increase in two years.
As reported by the Kyodo news agency, household spending is an important indicator of private consumption. This accounts for more than half of Japan’s gross domestic product (GDP).