09/08/2024 – 17:35
China’s foreign exchange reserves rose last month, driven by the Chinese yuan’s appreciation against the U.S. dollar and amid prospects of interest rate cuts by the U.S. Federal Reserve.
Data released Saturday by the People’s Bank of China (PBoC) showed that foreign exchange reserves rose by $31.8 billion last month from $3.288 trillion at the end of August. That was the highest level since December 2015 and also marked the second month of gains for the country with the world’s largest foreign currency hoard. That was below the $3.298 trillion expected by economists in a Wall Street Journal poll.
The global U.S. dollar index fell and financial asset prices rose in August, driven by factors including macroeconomic data and monetary policy expectations in major economies, China’s foreign exchange regulator said in a statement. The combined effect contributed to the increase in reserves, the regulator said in a statement.
Saturday’s data also showed China’s central bank maintained its pause in gold bullion purchases for a fourth straight month in August, with its reserves unchanged at 72.8 million troy ounces at the end of last month. In May, the PBoC halted an 18-month buying spree of the precious metal that helped push prices to record highs.
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