(Yicai Global) May 8 -- China's foreign exchange reserves rose for the third consecutive month in April, up USD20.4 billion, or 0.7 percent, to almost USD3.03 trillion, according to data from the People's Bank of China, the nation's central bank.
Gold reserves remained unchanged at 59.24 million ounces, the data showed.
Last month, the gap between cross-border capital inflow and outflow continued to narrow as forex supply and demand became more balanced, an official from the State Administration of Foreign Exchange said. Non-dollar currencies rallied on the global market, resulting in the value of assets denominated in these currencies rebounding and in turn leading to an increase in China's foreign reserves, he added.
As China's supply-side structural reform deepens, the country's economic fundamentals will continue to stabilize and improve, he said. As a result, fluctuations in exchange rate expectations will smooth out, and cross-border capital movements will continue to become more balanced. This will lay the foundation for further stabilization of reserves.
China's forex reserves dipped below the USD3 trillion mark in January for the first time in around six years. Stringent controls over outbound investment and foreign exchange, combined with US President Donald Trump retracting his comments on China being a currency manipulator, seem to have contributed to the recent rise. The latest spurt marks the first time reserves have growth for three consecutive months since June 2014.