Forex reserves gain for 4th month
CHINA’S foreign exchange reserves rose in May in the longest winning streak in three years on a weaker US dollar and stable cross-border capital flow.
The reserves climbed for the fourth consecutive month by US$24 billion to US$3.05 trillion by the end of May, data by the People’s Bank of China showed yesterday.
That compared with the US$20.4 billion increase in April and exceeded market hopes for US$10 billion according to a Reuters poll.
The State Administration of Foreign Exchange said in a statement that the increase was driven by improved cross-border capital flow and an overall appreciation of non-US dollar currencies.
China’s cross-border capital flow continued to stabilize while there was a balanced demand and supply of foreign exchange, SAFE said.
Domestic economic growth continued at a reasonable pace amid improved quality and structure, SAFE said, adding that foreign exchange purchasing activities were more rational amid the yuan’s firming and stable international financial markets.
“The key contributors to the better reading could be a positive valuation effect due to a weaker US dollar against the euro and our projected wider trade surplus,” Morgan Stanley said in a note before the data were released.
“Meanwhile, we expect the pace of capital outflows to have remained subdued in May due to better external demand and China’s domestic monetary tightening.”
China’s forex reserves shrank by US$320 billion last year when the yuan weakened 6.5 percent against the US dollar.
Authorities have released measures to regulate cross-border money flow including tighter scrutiny of companies’ overseas investment activities, restricting offshore use of bank cards, and cracking down on underground money markets.
SAFE last week ordered banks to report overseas bank card transactions of above 1,000 yuan in an attempt to prevent illegal cashing in from deposits and credit cards.
- About Us
- |
- Terms of Use
- |
- RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证:沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证:31120180004
- |
- 网络视听许可证:0909346
- |
- 广播电视节目制作许可证:沪字第354号
- |
- 增值电信业务经营许可证:沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.