MNI: China FX Reserves Fall In April On Valuation Effect: PBOC

--China March FX Reserves Fell $17.97 Billion To $3.12 Trillion

     BEIJING (MNI) - The appreciation of the dollar and falling asset prices

drove down the value of China's foreign-exchange reserves in April, according to

the People's Bank of China and State Administration of Forex Reserves. 

     FX reserves fell by $17.97 billion to $3.12 trillion as of Apr 30,

according to data released Monday by the People's Bank of China (PBOC), compared

with an increase of $8.34 billion in March. 

     "Demand and supply for foreign exchange remained generally stable and

balanced in April," the State Administration of Foreign Exchange (SAFE), a

division of PBOC, said on its website Monday. Non-dollar currencies depreciated

against the dollar, which, together with falling asset prices contributed to a

decrease in the value of China's FX reserve in U.S. dollar terms, it said.

     The U.S. dollar index (DXY), which tracks the greenback against a basket of

currencies, rose to 91.84 on Apr 30, up from 89.98 on Mar 31.

     10-year Treasury yields also went up from 2.74% on Mar 29 to 2.95% on Apr

30.

     SAFE said FX reserves should remain "generally stable" and cross-border

capital flows will remain "generally balanced" as China's economy develops

steadily.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com

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