CX Briefing: China’s Forex Reserves Get Boost From Weakening Dollar

A rundown of the news making headlines in and around China:

Bolstering reserves: China’s foreign exchange reserves rose to $3.3 trillion for the first time in nearly a year. The reserves grew by $32.2 billion in June, the sixth straight monthly increase, according to official data. The increase was mainly due to the weakening U.S. dollar and changes in asset prices, said the State Administration of Foreign Exchange. While the dollar remains the dominant reserve currency, it is dogged by uncertainty about the U.S. economic outlook and expectations of more interest rate cuts. Meanwhile, China increased its gold holdings for the seventh consecutive month in June, bringing the total to 73.9 million ounces. However, since March, the pace of the central bank’s gold buying has slowed — in step with soaring costs.