China's Forex Reserves Snap Seven-Month Decline to Rise Above USD3 Trillion
Yicai Global
/SOURCE : Yicai
China's Forex Reserves Snap Seven-Month Decline to Rise Above USD3 Trillion

(Yicai Global) March 8 -- China's foreign exchange reserves climbed back above USD3 trillion in February, after a seven-month slump, according to official data.

Forex reserves rose USD6.92 billion last month, pushing them slightly over the USD3 trillion milestone and marking the first month of positive growth since June. The value in Special Drawing Rights, a currency basket of the International Monetary Fund, was SDR2.22 trillion, up from SDR2.21 trillion the month before.

Gold reserves totaled around 59 million ounces (1,842 tons) at the end of the month, tying the figure for January. Despite the similar amount of gold, its value rose from to USD74.3 billion in from USD71.3 billion.

Cross-border capital movements remained generally stable and other currencies weakened against the dollar on the global market, the State Administration of Foreign Exchange said. However, asset prices increased, so losses in forex reserves from currency investments were offset by gains in asset investments, it added, saying a number of factors contributed to the rise in reserves.

The administration suggested that as the economy gathers momentum, capital outflow will ease, but uncertainties in the global market will hold the volume of reserves fairly stable.

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