China forex reserves fall more than expected to US$3.055 trillion in August

CHINA’S foreign exchange reserves fell more than expected in August, official data showed on Wednesday (Sep 7), as the US dollar climbed against other major currencies.

The country’s foreign exchange reserves - the world’s largest - fell US$49.2 billion to US$3.055 trillion last month, compared with US$3.079 trillion tipped by a Reuters poll of analysts and US$3.104 trillion in July.

The yuan fell 2.2 per cent against the US dollar in August, while the US dollar rose 2.7 per cent in the same month against a basket of other major currencies.

China held 62.64 million fine troy ounces of gold at the end of August, unchanged from the end-July.

The value of China’s gold reserves fell to US$107.49 billion at the end of August from US$109.84 billion at the end-July.

China’s central bank said on Monday it would cut the amount of foreign exchange reserves that financial institutions must hold, a move seen as aimed at slowing the pace of the yuan’s recent depreciation. REUTERS