Forex re­serves con­tinue monthly in­crease

China Daily (Canada) - - NEWS CAPSULE -

China’s for­eign ex­change re­serves grew for a sixth con­sec­u­tive month in July, as a stronger yuan and strength­ened over­sight of out­bound in­vest­ment helped curb cap­i­tal out­flows.

The re­serves rose by $3.2 bil­lion over June to $3.08 tril­lion in July.

An­a­lysts said a re­cent weak dol­lar is one ma­jor rea­son for the con­tin­ued gain of the re­serves.

The dol­lar in­dex, which mea­sures the value of the dol­lar against a bas­ket of ma­jor cur­ren­cies, has fallen since late June to hit 92.57 early this month be­cause con­cern per­sists over US Pres­i­dent Don­ald Trump’s plans for a large fis­cal stim­u­lus.

The in­dex is down by 10 per­cent com­pared with early this year. The re­cent weak­en­ing of the dol­lar has helped push up the value of non­dol­lar cur­ren­cies in China’s forex hold­ings, ac­cord­ing to Zhao Xue­qing, an an­a­lyst with Bank of China.

Eas­ing cap­i­tal out­flow pres­sure since the be­gin­ning of the year has helped bol­ster forex re­serves.

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