Forex reserves continue monthly increase
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.