China’s June forex reserves rise to US$3.112 tril

BEIJING: China’s foreign exchange reserves rose less than expected in June as the yuan strengthened and global asset prices rebounded amid a recovery in economic sentiment.

The country’s foreign exchange reserves – the world’s largest – rose US$10.64 bil in June to US$3.112 tril, central bank data showed on Tuesday.

Economists polled had expected the country’s reserves to rise by US$18.31 bil to US$3.120 tril.

Foreign inflows into Chinese stocks and bonds have picked up recently as investors bet on an economic rebound. Strict capital controls have also largely helped China keep outflows under control over the past year despite the shock from the coronavirus outbreak, a prolonged trade war with the United States and weakening economic growth.

The yuan rose 0.99% against the dollar in June, while the dollar fell about 0.97% in the same month against a basket of other major currencies.

China held 62.64 million fine troy ounces of gold at the end of June, unchanged from end-May.

The value of China’s gold reserves rose to US$110.76 bil at the end of June from US$108.29 bil at end-May. – July 7, 2020, Reuters

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