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MNI BRIEF: China Forex Reserve Declines A Third Straight Month

MNI (Beijing)

China's end-March foreign exchange reserves fell 0.8% from the previous month to USD3.19 trillion, or a drop of USD25.8 billion, the State Administration of Foreign Exchange said in a statement Thursday. That is a third straight monthly decline, according to Wind data.

The drop in the value of China's forex stockpiles followed declines in the prices of bonds of major nations as the world's financial markets readjusted to changes in monetary policies, geopolitics and the Covid-19 pandemic, the regulator said. The drop in the value of non-dollar currencies and changes in asset prices also contributed to the decline, SAFE said.

China's inflow of capital overall rose in March while the forex market was mostly in balance, the statement said.

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