China's Forex Reserves Rise for Second Straight Month
Liao Shumin
/SOURCE : Yicai
China's Forex Reserves Rise for Second Straight Month

(Yicai Global) Aug. 8 -- China's foreign exchange reserves climbed for the second straight month in July, bucking expectations to reach almost USD3.12 trillion.

Forex reserves climbed USD5.8 billion, or 0.19 percent, last month, the State Administration of Foreign Exchange said yesterday. The figure had edged up USD1.5 billion in June.

The stable value of reserves was a result of steady capital flow and a generally balanced local forex market, the administration said.

"Internationally, the U.S. dollar index stayed flat at the end of July from a month ago, financial asset prices saw minor fluctuations, and non-U.S. dollar assets also changed to different extents," it added, saying these all contributed to the slight rise in reserves. It expects the value of its forex stockpile to remain stable.

The external environment has been more complicated and uncertain since the beginning of this year, state-owned news agency Xinhua reported, giving a nod to a volatile international financial market, the rising dollar and its interest rates and intensified trade frictions.

China's gold reserves remained unchanged at 59.24 million ounces over the period, according to the People's Bank of China. Their value slipped to USD72.3 billion from USD74.1 billion at the end of June.

Editor: James Boynton

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Keywords: Foreign Exchange Reserve , China's Central Bank , State Administration of Foreign Exchange