China's Forex Reserves Shrink by US$ 4.1 billion in July

(Beijing) – China's foreign exchange reserves fell US$ 4.1 billion to US$ 3.2 trillion in July compared to the previous month, according to central bank data, although the yuan rallied against the U.S. dollar starting in mid-July.

The yuan's reference rate against the U.S. dollar set by the central bank increased from 6.68 on July 15 to 6.65 on the last trading day of the month. However, a strengthening yuan didn't stop the decline in foreign exchange reserves, which shows the central bank was more restrained when intervening in the currency market, said Xie Yaxuan, chief macroeconomic analyst of China Merchants Securities.