China’s July foreign exchange reserves rise to above $3tn

August 7, 2017 10:30 pm

’s foreign exchange reserves increased to a nine-month high in July in what appears to have been much higher than what the analysts had expected.  

The latest official figures show that China’s foreign exchange reserves increased to a nine-month high in July in what analysts say is a result of tighter regulations and a weaker dollar.
Reuters in a report said China’s foreign exchange reserves had increased by $24 billion over the past month to reach as high as $3.081 trillion. 
The rise that had taken place a month earlier was only $3.2 billion.    
For July, the economists had expected a rise of $12 billion, added the report. 
It was the first time that China’s reserves had climbed for six months in a row since June 2014, and the gain brought them to their highest level since October, Reuters added.
China tightened rules on moving capital outside the country in recent months as it sought to support the yuan currency and stem a slide in its foreign exchange reserves.
It burned through nearly $320 billion of reserves last year but the yuan still fell about 6.5 percent against the surging dollar, its biggest annual drop since 1994, Reuters added.
The yuan has steadied since then and rebounded more than 3 percent so far this year. This, the report emphasized, could be a result of a reversal in the dollar and fresh steps by Beijing to flush out speculators who were betting on further depreciation of the currency.
The value of gold reserves rose to $75.084 billion at the end of July, from $73.585 billion at the end of June, data on the People’s Bank of China website also showed, as reported by Reuters.
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