Quick Take: China Forex Reserves Swell
(Beijing) — China’s foreign exchange reserves rose for the seventh straight month in August, as outflows eased further and the financial assets in the reserves increased in value.
The reserves, the world’s largest, climbed to $3.0915 trillion last month, up from $3.0807 trillion in July, according to data from the State Administration of Foreign Exchange (SAFE). August’s increase, however, was less than July’s $23.9 billion gain.
“Cross-border capital flows were steady in August, while the supply and demand in the foreign exchange market was largely balanced,” SAFE’s statement said.
In January, the country’s foreign exchange stockpile had fallen for seven consecutive months, dipping below what analysts widely believe was the central bank’s psychological comfort level of $3 trillion. China’s foreign exchange reserves hit their lowest level in six years.
But the reserves have gradually recovered since February due to the ongoing crackdown on capital flight, as well as stronger-than-expected economic growth in China, which helped ease fears of a weakening yuan.
Chinese authorities have taken a series of measures since the fourth quarter of 2016 to halt capital outflows, including curbing domestic companies’ investments overseas and enhancing scrutiny of individual requests for foreign currency.
On August 18, the State Council, China’s cabinet, released rules that severely restricted investment in five sectors: real estate, hotels, cinemas, entertainment and sports.
The yuan has strengthened more than 6% this year on the back of a weak dollar and the new “counter-cyclical” factor that the central bank introduced in May, which essentially gives it more discretionary power to influence the Chinese currency’s daily trading midpoint.
Contact reporter Fran Wang (firstname.lastname@example.org)
Jun 01 17:41
Jun 01 12:22
May 29 18:23
May 29 18:04
May 29 12:40
May 28 16:02
May 28 12:52
May 28 09:10
May 27 16:43
May 27 13:27
May 27 12:54
May 26 17:38
May 26 17:03
May 26 12:26
May 26 10:44
- 1China’s ‘Bat Woman’ Warns Coronavirus Is ‘Just Tip of the Iceberg’
- 2Update: Mass Testing in Wuhan Uncovers Over 200 Asymptomatic Covid-19 Cases
- 3In Depth: Huawei’s Chip Dreams in Crosshairs of Latest U.S. Assault
- 4Premier Sends ‘Powerful’ Signal for China to Join Asia-Pacific’s Largest Trade Pact
- 5China Won’t Ease Curbs on International Flights as Fast as Expected
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas