China sees increase in forex reserves to $3.09t in August

Source:Reuters-Global Times Published: 2017/9/7 22:38:40

China's foreign exchange reserves edged up in August for a seventh straight month, albeit slightly less than market expectations, as tighter regulations and a weaker dollar continued to keep capital outflows in check.

Reserves rose $10.5 billion in August to $3.092 trillion, compared with an increase of $24 billion in July.

Economists polled by Reuters had expected foreign exchange reserves to rise by $19 billion to $3.1 trillion.

It is the first time that China's reserves have climbed for seven months in a row since June 2014, and marks the highest level since October 2016.

China has tightened rules on moving capital outside the country since late last year, in an effort to support the yuan and stem a slide in its foreign exchange reserves.

The country burned through nearly $320 billion of reserves last year and the yuan fell about 6.5 percent against the surging dollar, its biggest annual drop since 1994.

However, the yuan has seen a sharp rebound this year, thanks to a reversal in the dollar and a further widening of the Chinese government's forex controls, including a clampdown on some outbound investment. The yuan has now recouped all of its 2016 losses.

The value of gold reserves rose to $77.702 billion at the end of August, up from $75.084 billion at end-July, according to data published on the website of the People's Bank of China, the central bank.

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