China foreign exchange reserves edge up by US$3b in June to US$3.057t

[BEIJING] China's foreign exchange reserves edged up in June for a fifth consecutive month, though by slightly less than market expectations, as capital outflows eased in the face of tighter controls and the US dollar's rally paused.

Reserves ticked up US$3 billion during June to total US$3.057 trillion, compared with an increase of US$24 billion in May to US$3.054 trillion.

It was the first time that reserves had climbed for five months in a row since June 2014.

Economists polled by Reuters had expected foreign exchange reserves to rise by US$6 billion to US$3.06 trillion in June.

China tightened rules on moving capital outside the country in recent months as it sought to support the yuan currency and stem a slide in its foreign exchange reserves.

It burned through nearly US$320 billion of reserves last year but the yuan still fell about 6.5 per cent against the US dollar, its biggest annual drop since 1994.

The yuan has been solid against the US dollar in recent weeks amid tighter capital controls and broad-based weakness in the greenback.

The value of gold reserves fell to US$73.585 billion at the end of June, from US$75.004 billion at end-May, data published on the People's Bank of China website also showed.

REUTERS