German external assets grew by a net €231 billion in 2016, closing the year at €1,709 billion. This increase was chiefly attributable to net capital exports, which were primarily a reflection of last year’s current account surplus.

To mark Chinese President Xi Jinping's visit to Berlin, the Deutsche Bundesbank and the People's Bank of China (PBoC) have signed a memorandum of understanding regarding the clearing and settlement of payments denominated in the Chinese renminbi in Frankfurt.

Bundesbank President Jens Weidmann has cautioned against using the Brexit vote as a reason to soften the fiscal rules in the euro area. In an interview with German weekly magazine Focus, Mr Weidmann stressed the importance of member states abiding by shared agreements and joint promises.

The German economy continued to expand at a rapid pace in the second quarter. In the Bundesbank’s assessment, the strong economic growth is likely to continue in the current quarter. The Monthly Report also notes that economic output for the year as a whole could rise even somewhat more strongly than was forecast in June.

Nowadays, a key part of trading on international stock markets is being performed by computer algorithms designed to minimise the time lag between orders and their execution. In the current issue of its Monthly Report, the Bundesbank studies what effects these increasingly rapid trading activities are having on the German capital market.