Print Edition - 2017-03-08  |  Money Digest

China forex reserves rebound

- AFP, BEIJING

Mar 8, 2017-

China’s foreign exchange reserves unexpectedly increased by $6.9 billion in February, officials said Tuesday, as pressure on its currency the yuan apparently eased. The world’s largest currency hoard rose to $3.01 trillion, the People’s Bank of China said on its website, beating a forecast by Bloomberg News that reserves would fall to $2.97 trillion. It marked a rebound from January, when the reserves dropped by $12.3 billion to below the psychologically significant $3 trillion threshold for the first time in six years. The result follows months of declines in forex reserves as China sold dollars to defend the yuan against depreciation caused by capital outflows as its economy slows. Authorities’ efforts to put the brakes on money leaving the country by propping up the value of the yuan have rapidly drained reserves.

Published: 08-03-2017 09:22

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