The News Review:

- China’s forex reserves to hit 2.49 trln usd in 2010 – report
- Forex – Dollar gains further after US new home sales data
- Internet-based forex service allowed

China’s forex reserves to hit 2.49 trln usd in 2010 – report
Forbes – Aug 24, 2006
49 trln usd in 2010 Shanghai Securities News reported citing Zhang Shuguang a professor at the independent Unirule Institute of Economics in Beijing. ‘Such substantial forex reserves are going to pose severe challenges to China’s macroeconomy’ Zhang said in a speech yesterday. China had foreign exchange reserves of 941. 1 bln usd at the end of June.

Forex – Dollar gains further after US new home sales data
Forbes – Aug 24, 2006
Figures out late this afternoon showed US new home sales fell by 4. 3 pct in July their biggest fall since February though market players were relieved that the data were not worse after yesterday’s sharp fall in existing home sales. ‘After the existing home sales data the market had feared a much worse figure and the dollar has seen a bit of a relief rally on the back of that’ said Bear Stearns analyst Steve Barrow. In other data out this afternoon headline US durable goods data were very disappointing falling by 2.

Internet-based forex service allowed
Hindu Business Line – Aug 24, 2006
23 The Reserve Bank of India has now allowed banks to offer Internet-based foreign exchange services. “n a review it has been decided that banks may be permitted to offer Internet-based foreign exchange services for permitted underlying transactions in addition to the local currency products already allowed to be offered on Internet-based platforms” said an RBI notification. According to the RBI the services offered through Internet for banks’ customers on an Internet-based platform for dealing in foreign exchange should allow only reporting and initiation of foreign exchange related transactions. The actual trade transactions should be permitted only after verification of physical documents said the notification.