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Due to the announcement made by the government China has revised main foreign exchange rules. This is the first alteration for the last 11 years. These changes are intended to increase the control over the fund flows and slow the forex reserves growth. As for the Chinese currency it is probably won’t be affected by the changes made. They will have only a psychological impact on the yuan.
According to the forex trader in Shanghai all these changes are nothing but the reflection of the positive situation occurred in the country at the beginning of the Olympics.

Last month China announced that its forex reserves overcame the point of $1.8 trillion. This was even higher than the forex reserves of the Japan in 2006. Such high numbers of foreign exchange reserves shows only that the country possessing it is able to pay other countries for products and debts. But in the current situation China doesn’t even own the biggest part of the reserves.

South Korea reported about the biggest for the July fall in the forex reserves of the country. Nevertheless due to senior foreign exchange official there was no reason for the authorities to shift from the current policy of protecting national currency just to restrain the inflation. Furthermore the worries about the declined reserves didn’t come true. The experts also approved this. They said that the general external payment capability of the country remained unchanged.