New | China’s foreign exchange reserves grow US$10 billion in March after falling for months
Rise to US$3.213 trillion marks first gain since October, prompting markets to reprice for a ‘soft landing’ and stemming capital outflows, analysts say
The mainland’s foreign exchange reserves gained US$10 billion in March, in a sign of abating panic over the prospects of the world’s second biggest economy and the outlook of its currency.
Foreign exchange reserves rose to US$3.213 trillion at the end of last month from US$3.202 trillion at the end of February, showed data released on the People’s Bank of China on Thursday.
The figure, the first monthly rise since last October, followed a fall of US$28.6 billion in February.
That compared with a record drop of US$108 billion in December and a similarly deep fall of US$99 billion in January.
‘It’s a kind of vicious cycle’: China’s foreign reserves fall by record US$108b in December
While financial markets had been pricing a “crash landing” by China, they were now repricing for a “soft landing”, said Tim Condon, head of Asia research at ING in Singapore.