Home / currency / afr said : China’s foreign exchange reserves rise for the first time in eight months

afr said : China’s foreign exchange reserves rise for the first time in eight months

As it stated in

China’s foreign exchange reserves unexpectedly climbed back up above the $US3 trillion mark in February, as the yuan stabilised and the government tightened capital controls to curb outflows.
Beijing told banks to scrutinise their clients foreign currency transactions more closely and increase disclosure requirements for individuals looking to cash out their annual $US50,000 foreign exchange quotas.
Most analysts had tipped reserves to fall further after they dipped below the psychologically important level of $US3 trillion for the first time in six years in January.
Reserves rose $US6.9 billion in February to $US3.01 trillion, marking the first increase since June last year.
At the end of last year, China’s government responded to surging outflows by introducing a suite of measures tightening capital controls.

As it stated in

China FX reserves rebound above $3 trillion in February, first rise in eight months

China FX reserves rebound above $3 trillion in February, first rise in eight months*/

The State Administration of Foreign Exchange, the foreign exchange regulator, said in a statement that China’s foreign exchange reserves are likely to stabilise gradually as pressures on capital outflows ease.
Capital Economics said last month’s rise suggests China’s central bank “purchased foreign exchange in February and that capital outflows stalled”.
The dollar gained against non-dollar currencies on the international market in February, but prices of assets in which China had invested its foreign exchange reserves increased, the SAFE said.
A logo of yuan is seen at a foreign exchange store in Shanghai, China, December 1, 2015.
The Chinese currency gained 0.2 percent in February, and is up 0.8 percent in 2017.

As it stated in

China's FX reserves grow for the first time since June*/

Chinese FX reserves did something that hasn’t been seen in eight months in February.
Over the course of 2016, China’s total FX reserves fell by $320 billion, the largest annual drop since 1994.
“On the other hand, the PBoC is expected to have sold $US38 billion in the FX market to prop up the CNY… leading to a net increase of $7 billion in China’s FX reserves in February.
“According to our estimation, valuation effects, that is changes caused by exchange rate fluctuations and investment returns, resulted in a gain of $45 billion in China’s FX reserves in February,” says Li.
According to the People’s Bank of China (PBoC), reserves lifted by $6.92 billion to $3.005 trillion during the month.

collected by :Donald Luther

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