Unexpected Uptick in Foreign Reserves Due to Asset Appreciation, Analysts Say

(Beijing) – An unanticipated increase in the Chinese central bank's foreign exchange reserve was probably caused by the appreciation of assets such as government bonds and it also signaled less state intervention in the yuan's exchange rate, analysts say.

The amount of foreign exchange held by the People's Bank of China grew by US$ 13.5 billion in June to US$ 3.2 trillion, according to data released by the central bank on July 7.