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China August FX reserves rise to $3.092 trln
September 7, 2017 / 8:32 AM / a month ago

China August FX reserves rise to $3.092 trln

BEIJING, Sept 7 (Reuters) - China’s foreign exchange reserves edged up in August for a seventh straight month, though 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 marked the highest level since October last year.

China has tightened rules on moving capital outside the country since late last year 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 and the yuan still 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 Beijing’s forex controls, including a clampdown on some outbound investment. The yuan appreciated 2 percent in August alone, and has now recouped all of its 2016 losses.

The value of gold reserves rose to $77.702 billion at the end of August, from $75.084 billion at end-July, data published on the People’s Bank of China website also showed. (Reporting by Beijing Monitoring Desk; Editing by Richard Borsuk)

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