Updated
Updated · Bloomberg · Aug 17
China’s Reserve Assets Jump $74.7 Billion, Smoothing Yuan’s 6th Straight Quarterly Gain
Updated
Updated · Bloomberg · Aug 17

China’s Reserve Assets Jump $74.7 Billion, Smoothing Yuan’s 6th Straight Quarterly Gain

3 articles · Updated · Bloomberg · Aug 17

Summary

  • $74.7 billion flowed into China’s foreign reserve measure under the balance of payments in the second quarter, marking the biggest quarterly increase since the first quarter of 2014.
  • Authorities absorbed heavy foreign-currency inflows, a move analysts say helped moderate the pace of the yuan’s appreciation rather than let gains accelerate more sharply.
  • The buildup coincided with a sixth consecutive quarterly rise in the onshore yuan through June, linking reserve accumulation to Beijing’s currency-smoothing efforts.
  • The data point to sustained capital inflows into China and show policymakers still leaning on reserve management to guide the yuan’s path.

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