China’s forex reserves steady in July

CHINA’S foreign exchange reserves rose US$5.8 billion, or 0.19 percent, from a month earlier to US$3.1179 trillion at the end of July, the central bank said yesterday.

The increase followed a month-on-month rise of about US$1.5 billion in June, according to the People’s Bank of China.

Stable value of the forex reserves last month came amid steady capital flow across borders and generally balanced forex market in China, according to a State Administration of Foreign Exchange statement.

“Internationally, the US dollar index stayed flat at the end of July from a month ago, financial asset prices saw minor fluctuations, and non-US dollar assets also changed to different extents, together contributing to the slight rise in China’s forex reserves,” the administration said in the statement.

Since the beginning of the year, the external environment has become more complicated and uncertain, with a more volatile international financial market, rising US dollar exchange and interest rates and trade frictions.

“As China’s economic fundamentals and policy framework remain stable, conditions exist for its capital flow across borders and forex market to remain steady,” the bank said, forecasting its forex reserves will also stay generally stable.

Gold reserves at the end of July were unchanged at 59.24 million ounces, with a value of US$72.32 billion, down from about US$74.07 billion at endJune.