(Bloomberg) --
The value of China's foreign-currency holdings edged up in December due to valuation effects and a possible easing of capital outflows due to a a stronger yuan.
- Reserves climbed to $3.1079 trillion from $3.0956 trillion in November, the People's Bank of China said Tuesday
Key Insights
- The reading is slightly lower than the median estimate of $3.11 trillion in a Bloomberg survey of economists
- “Capital outflow pressures may have eased a bit in December, as the yuan appreciated by 0.9% at end-December versus end-November,” Wang Tao, chief China economist at UBS Group AG. in Hong Kong, wrote before the data was released. “We estimate December's valuation effect from reserve currencies' movement at a gain of $15-20 billion,” as the dollar weakened against other reserve currencies and boosted the value of assets denominated in euro and yen, she wrote.
- “China's foreign exchange market was stable, international payments were balanced,” the State Administration for Foreign Exchange, which manages the reserves, said in a statement, adding that sound economic growth will support an overall stable reserves stockpile.
--With assistance from Tomoko Sato and Yinan Zhao.
To contact Bloomberg News staff for this story: Lin Zhu in Beijing at lzhu243@bloomberg.net
To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James Mayger
©2020 Bloomberg L.P.
With assistance from Bloomberg
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