read more from daily reckoning australia....
"China's huge FX reserves are no longer growing. In fact, they are widely tipped to have contracted in the final quarter of 2011. Sensing the party is over, speculative money is quietly flowing back out of China’s economy. As FX reserves fall, so do banking system reserves. Left unchecked, this represents monetary policy tightening. A lower reserve requirement merely offsets the effect of falling FX reserves."
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