China’s forex reserves fall US$9 billion in November on lower valuation of assets
- Despite dip, China’s foreign exchange reserves have been generally rising since end of last year as foreign investors snap up stocks and bonds
- China’s gold reserves fall to US$91.47 billion at end of November from US$94.65 billion a month earlier
China’s foreign exchange reserves fell by US$9 billion in November to US$3.096 trillion, the central bank said on Saturday, as Washington and Beijing remained locked in negotiations over an interim trade agreement.
Analysts polled by Reuters had expected China’s reserves, the world’s largest, to fall by just US$4 billion in the month.
Despite a slowing economy and an escalating trade war, China’s foreign exchange reserves have been gradually rising since late last year, helped by tight capital controls and rising inflows from foreign investors who are snapping up the country’s stocks and bonds.
Modest changes in reserve levels in recent months have been largely ascribed to fluctuations in global exchange rates and the value of assets that China holds, such as foreign bonds.
After sliding sharply this summer as the dispute suddenly escalated, the yuan rose for three straight months through November on hopes of a trade truce, only to fall back again in early December as tensions between Washington and Beijing flared. Fresh US tariffs on Chinese goods are set to take effect on December 15.