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MNI: China FX Reserves Fall In February On Value Effect: PBOC

MNI (London)
--China January FX Reserves Fall $21.51 Billion To $3.16 Billion
     BEIJING (MNI) - The appreciation of the dollar dragged down the value of
China's foreign-exchange reserves in February, which was the first month that
the reserves have decreased since January 2017, according to China's central
bank. 
     FX reserves fell by $26.98 billion to $3.13 trillion as of Feb 28,
according to data released Wednesday by the People's Bank of China (PBOC),
compared with the gain of $21.51 billion in January. 
     "Cross-border capital flows and transactions were generally stable in
January," the State Administration of Foreign Exchange (SAFE), a division of
PBOC, said on its website Wednesday. Non-dollar currencies depreciated against
the dollar while asset prices retreated, contributing to a "mild fall" in the
value of China's FX reserve in U.S. dollar terms, it said.
     The U.S. dollar index (DXY), which tracks the greenback against a basket of
currencies, rose to 90.38 on Feb. 27, up from 89.12 on Jan. 31.
     SAFE said the FX reserves should remain "generally stable" and cross-border
capital flows will remain "generally balanced" as China's economy develops
steadily, the global economy continues to revive, main central banks will
gradually tighten their monetary policies and the uncertainties of global
financial market picks up. 
--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: MAQDS$,M$A$$$,M$Q$$$,MT$$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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