China’s foreign currency reserves fell slightly in January, official data showed on Sunday, likely due to valuation effects as the US dollar posted a small gain against a basket of major currencies. China’s foreign exchange reserves, the largest in the world, fell to US$3.211 trillion last month, compared with US$3.217 trillion in December. The US dollar index rose by 0.7 per cent against a basket of currencies in January. The dollar accounted for 58 per cent of China’s reserves in 2015, according to latest available data. Foreign inflows into Chinese stocks and bonds have been strong as China gallops ahead of other major economies in its recovery from the coronavirus pandemic . China should not count on strong US policy under Yellen to ease yuan pressure Foreign investors held more than a tenth of all outstanding Chinese government bonds for the first time in January, as demand surged on a combination of higher yields and a stronger yuan. China held 62.64 million fine troy ounces of gold at the end of January, unchanged from December. The value of the gold reserves fell to US$116.76 billion at the end of January from US$118.25 billion at the end of December.