May 07, 2024 10:04 GMT
MNI BRIEF: China FX Reserves 1.38% April Dip In Dollar Terms
MNI (BEIJING)
MNI (Beijing)
China’s foreign exchange reserves totalled USD3.208 trillion through end-April, down 1.38% from March, according to data released by the State Administration of Foreign Exchange (SAFE) on Tuesday.
Reserves had fallen due to exchange rate conversion effects and changes in asset prices, SAFE said in a statement. However looking forwards, the country’s FX reserves would maintain basic stability given China’s resilient economy.
China’s yuan will likely test 7.30 against the greenback in the short term should the U.S. dollar index move toward 107, but continue to depreciate more slowly than other currencies as the People’s Bank of China sets relatively strong fixings and tight offshore liquidity shores up the CNH rate outside the mainland, policy advisors and traders recently told MNI. (SEE: MNI: China Yuan Seen Breaching 7.3, Strengthening Against Basket)
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