China's forex reserves keep growing

China's foreign exchange reserves rose for the 12th straight month to reach 3.1615 trillion U.S. dollars at the end of January, official data showed Wednesday.

[File photo: VCG]

The amount was slightly below the market forecast of 3.17 trillion dollars, and 21.5 billion dollars up from the end of December, according to the People's Bank of China (PBOC).

A statement from the State Administration of Foreign Exchange (SAFE) attributed the increase to stronger non-dollar currencies and higher asset prices.

Cross-border capital flows and transactions remained stable in January, it said.

China's forex stockpile has increased steadily since February 2017 after dipping below 3 trillion dollars in January, as the economy got on a firmer footing and the yuan continued to stabilize.

The reserves will continue to maintain overall stability in future, SAFE said, citing positive economic fundamentals and a recovering global economy.

It predicted more balanced forex supply and demand, noting that the yuan's exchange rate would see more "two-way movement."

"As cross-border capital flows became more balanced, the administration returned to a neutral macro-prudential policy," Pan Gongsheng, head of SAFE, wrote in an article published Wednesday.

"The administration will continue to support legal cross-border fund outflows and inflows while cracking down on illegal flows," Pan noted.

He said the SAFE would adopt a rational perspective on changes in forex reserves and target a "dynamic equilibrium" in international payments.

The PBOC data also showed the country's gold reserves remained unchanged at 59.24 million ounces, and valued at 79.68 billion U.S. dollars.