MNI: China FX Reserves Rise In January On Value Effect: PBOC

--China January FX Reserves Rise $21.51 Billion To $3.16 Billion

     BEIJING (MNI) - The appreciation of non-dollar currencies pushed up the

value of China's foreign-exchange reserves in January, which was the 12th

consecutive month that the reserves have increased, according to China's central

bank. 

     FX reserves increased by $21.51 billion to $3.16 trillion as of Jan 31, the

highest level since September 2016, according to data released Wednesday by the

People's Bank of China (PBOC). The gain is slightly higher than the $20.67

billion increase recorded in December. 

     "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 appreciated against

the dollar while asset prices had varied performances, contributing to a "mild

rise" 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, fell to 89.12 on Jan. 31, down from 92.257 on Dec. 29.

     SAFE said the FX reserves should remain "generally stable," as overseas and

domestic fundamental economic and financial conditions will keep cross-border

capital flows and forex supply and demand balanced.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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