China forex re­serves fall to $3.65 trn in July: Xin­hua

The Pak Banker - - BUSINESS -

China's for­eign ex­change re­serves, the world's largest, fell to $3.65 tril­lion at the end of July, the of­fi­cial news agency Xin­hua re­ported Fri­day, adding that it was the third con­sec­u­tive monthly de­crease.

July's fall amounted to $42.5 bil­lion, it said, cit­ing an an­nounce­ment by the Peo­ple's Bank of China (PBoC), the cen­tral bank. Fri­day's an­nounce­ment was the first time the PBoC re­leased monthly for­eign re­serve data, rather than quar­terly, and marks the low­est fig­ure since Au­gust 2013, Bloomberg News re­ported.

China's cen­tral bank has adopted stricter re­port­ing rules as part of its push to have the yuan added to the In­ter­na­tional Mon­e­tary Fund's bas­ket of re­serve cur­ren­cies at its next re­view, Bloomberg added. The IMF, how­ever, said Tues­day that China still needs to do "sig­nif­i­cant work" for the yuan to be in­cluded in its bas­ket of "spe­cial draw­ing rights" (SDR) cur­ren­cies. China is seek­ing to ex­pand use of the yuan, also known as the ren­minbi, by hav­ing it in­cluded in the SDR, an in­ter­na­tional re­serve as­set that cur­rently in­cludes the US dol­lar, euro, Bri­tish pound and Ja­panese yen.

The IMF ex­ec­u­tive board, which rep­re­sents the in­sti­tu­tion's 188 mem­ber na­tions, will make its fi­nal de­ci­sion in Novem­ber, a se­nior IMF of­fi­cial said on con­di­tion of anonymity. July's re­serves fall "re­flects the cen­tral bank's in­ter­ven­tion in the mar­ket to keep the yuan sta­ble, as well as the con­tin­ued cap­i­tal out­flows," Li Miaox­ian, economist at Bo­com In­ter­na­tional Hold­ings in Bei­jing, told Bloomberg. Gold re­serves also fell to $59.2 bil­lion at the end of July, from $62.4 bil­lion a month ear­lier, Xin­hua said, cit­ing the PBoC.

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