China's Forex Purchases Are Becoming Increasingly Rational, SAFE Says
Tang Shihua
/SOURCE : Yicai
China's Forex Purchases Are Becoming Increasingly Rational, SAFE Says

(Yicai Global) Aug. 8 -- As supply and demand on the foreign exchange market remains balanced, the yuan's exchange rates have stabilized and forex purchases have become increasingly rational, an official from China's State Administration of Foreign Exchange said yesterday.

The country's forex reserves leapt USD23.9 billion last month, marking the first six-month climb since June 2014, according to data the regulator released yesterday.

The US dollar weakened against other currencies in general, the official said, pushing up the total size of dollar-denominated foreign reserves.

Continuous deregulation of the financial market, healthy development of the forex market and stabilizing market expectations are further consolidating the foundation for steady cross-border money movements, he added, setting a solid base to ensure the stability of foreign reserves in the future.

China's special drawing right-denominated reserves fell to SDR2.19 trillion last month, down USD8.5 billion from the month prior.

National foreign reserves were at USD3.08 trillion in July, higher than the USD3.07 trillion forecast. The value of China's gold reserves totaled USD75 billion in the same month, up USD1.5 billion despite the total mass of the reserves remaining unchanged at 59.24 million ounces.

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Keywords: Financial Regulator , Data , Foreign Exchange Reserve , Capital Flow