Forex reserves in modest rise

CHINA’S foreign exchange reserves rose modestly in May for a fourth straight month and by more than markets had expected, as stringent capital control measures and a weakening dollar helped staunch outflows. Reserves rose $24 billion (R306.36bn) in May to $3.054 trillion, compared with an increase of $21bn in April to $3.03trln, central bank data showed yesterday. It was the first time that reserves had climbed for four months in a row since June 2014. Economists polled had expected reserves to rise $10bn to $3.04trln. China has tightened rules on moving capital outside the country in recent months as it seeks to support the yuan currency and stem a slide in its foreign exchange reserves. – Reuters