From the NEW YORK TIMES:
…China’s foreign exchange reserves surged in the fourth quarter by a record amount while the money circulating within the Chinese economy also climbed more than expected in December, according to government statistics released Tuesday that underline the country’s worsening inflation dilemma.
The Chinese government has been printing renminbi at a furious pace in order to buy foreign currencies like the dollar and the euro, which are pouring into the country through trade surpluses and foreign investment. The People’s Bank of China, the country’s central bank, has been doing so in an effort to hold down the value of the renminbi and preserve a competitive advantage in foreign markets for exporters in China and the tens of millions of workers they employ…
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