China’s foreign exchange reserves hit seven-month high of almost US$3.1 trillion in March
- Monthly increase of nearly US$9 billion far higher than analysts’ forecasts
- With economy set to maintain reasonable growth and improved flexibility in yuan exchange rate, forex reserves will remain stable, regulator says
China’s foreign exchange reserves rose for a fifth straight month in March, with the increase exceeding expectations, as growing optimism about the prospects for a US-China trade deal offset concerns over slowing economic growth.
Chinese reserves, the world’s largest, rose by nearly US$9 billion in the month to US$3.099 trillion, its highest since August, according to central bank figures released on Sunday.
Economists polled by Reuters had expected the reserves to rise by US$5 billion to US$3.095 trillion.
“The US dollar index strengthened slightly in March due to the China-US trade talks, the revised policy outlooks of central banks in Europe and America, as well as uncertainty over Brexit … China’s forex reserves expanded marginally,” China’s State Administration of Foreign Exchange said after the data release.
The forex regulator said also that with the economy expected to maintain reasonable growth and improved flexibility in the yuan exchange rate, China’s forex reserves will remain stable.