[BEIJING] China's foreign currency regulator is not concerned about forex outflows, the country's State Administration of Foreign Exchange (SAFE) said on Thursday.

However, China is closely monitoring the impact of US monetary policy, and is seeing signs of increased volatility in cross-border flows.

The remarks were made by Guan Tao, head of the department of international payments at SAFE, during a news conference.

China's foreign exchange reserves, the world's largest, fell slightly to US$3.89 trillion at the end of September from US$3.99 trillion at the end of June, central bank data showed.

The decline suggested speculative "hot money" outflows from China amid increased market jitters about whether the world's second-largest economy may be at risk of a sharper slowdown, analysts said.

Guan said the decline in forex reserves was in line with policy goals, adding that the central bank was gradually ceasing intervention in the forex market.

REUTERS