China Reserves Maintain Rising Streak as Yuan Stability Endures
China’s foreign-exchange reserves increased for a 10th month in November amid continued stability in the yuan.
The world’s largest foreign currency stockpile climbed $10.1 billion to $3.12 trillion, the People’s Bank of China said Thursday, in line with the median of estimates in Bloomberg’s survey.
Better sentiment for the currency and tight capital controls kept in place this year have helped rebuild the holdings, which fell below $3 trillion in January for the first time since 2011. Still, outflow pressures loom, with monetary policy normalization in other major economies poised to reduce demand for emerging-market assets.
"The PBOC seems to have reduced its intervention in the FX market in the past few months," Liu Liu, an economist at China International Investment Corp. in Beijing, wrote in a note.
— With assistance by Yinan Zhao