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China's FX Reserves Hold Above USD3 Trillion in Aug - Herald

CHINA PRESS
MNI (Singapore)

China's foreign exchange reserves dropped by USD49.19 billion to USD3.05 trillion by the end of August 2022, the 21st Century Business Herald reported, citing data from the State Administration of Foreign Exchange. The sharp rise in the U.S. dollar led to a significant drop in the valuation of non-U.S. assets. Analysts believe Chinese authorities can stabilize the yuan without using FX reserves as it has abundant policy tools, including withdrawing liquidity from the offshore market, reintroducing the counter-cyclical factor and cutting the FX reserve ratio.

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