China's July FX reserves rise to $3.081 trln, more than expected

Reuters

Posted at Aug 07 2017 05:06 PM

BEIJING - China's foreign exchange reserves rose more than expected in July to a nine-month high as tighter regulations and a weaker dollar curbed capital outflows.

Reserves rose $24 billion in July to $3.081 trillion, compared with an increase of $3.2 billion in June.

Economists polled by Reuters had expected reserves to rise $12 billion.

It was the first time that China's reserves had climbed for six months in a row since June 2014, and the gain brought them to their highest level since October.

China tightened rules on moving capital outside the country in recent months as it sought to support the yuan currency and stem a slide in its foreign exchange reserves.

It burned through nearly $320 billion of reserves last year but the yuan still fell about 6.5 percent against the surging dollar, its biggest annual drop since 1994.

The yuan has steadied since then, and rebounded more than 3 percent so far this year, thanks largely to a reversal in the dollar and fresh steps by Beijing to flush out speculators who were betting on further depreciation of the currency.

The value of gold reserves rose to $75.084 billion at the end of July, from $73.585 billion at end-June, data on the People's Bank of China website also showed. 

(Reporting by Elias Glenn and Lusha Zhang; Editing by Kim Coghill)