China's foreign reserves rise a sixth month on yuan strength

[BEIJING] China's foreign-exchange reserves posted a sixth straight monthly increase as the yuan strengthened and economic growth remained robust.

The foreign currency stockpile climbed US$23.9 billion to US$3.081 trillion in July, the People's Bank of China said Monday, versus a US$3.075 trillion estimate in a Bloomberg survey.

Solid economic data and the presence of curbs on moving money abroad have helped restore confidence in the currency and ease outflow pressure. The foundation for steadier cross-border capital flows has become more solid, the State Administration of Foreign Exchange said last month.

A weaker US dollar has also lifted the value of assets in yen and euros.

"Outbound investment has cooled, and that has led to declining outflows," Nie Wen, an economist at Huabao Trust in Shanghai, said ahead of the data.

"The PBOC didn't have to intervene much when the yuan was strengthening." The onshore yuan strengthened 0.8 per cent to 6.7290 per US dollar last month.

BLOOMBERG