EFTA Document EFTA01458288

1 September 2015 Special Report: The "Great Accumulation" Is Over: FX Reserves Have Peaked, Beware QT The long-term prospect of a more flexible RMB also raises the question of what the PBoC would do with the reserves left over from the current drain. Reserves could be used increasingly as sovereign wealth rather than for currency managements. The FX impact of such a shift in investment objective would likely be bearish EUR/USD. The reason is that the transition from liquidity management to