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China FX reserves increase slightly in September

International

China FX reserves increase slightly in September

Mon, 09 October 2017
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(ShareCast News) - China's foreign exchange reserves were little changed last month as capital outflows from Asia's largest economy remained small.
The value of the country's hoard of reserve assets rose by $17bn in September to reach $3.108trn, according to the People's Bank of China.

For Julian Evans-Pritchard at Capital Economics, that increase was mainly the result of valuation effects as opposed to intervention in FX markets.

Nevertheless, it was possible that the PBoC turned a net buyer of FX (and seller of yuan) in September, for the first time since October 2015.

Yet Evans-Pritchard believed that was more out of a desire by Beijing to maintain some 'two-way' risk in the currency market rather than part of a medium-term effort to curb the Chinese currency's strength.