MNI: China FX Reserves Rose In June On Value Effects: PBOC

--China June FX Reserves Rose $1.51 Billion To $3.112 Trillion

     BEIJING (MNI) - China's foreign exchange reserves increased modestly in

June, the first rise after two consecutive monthly falls, as prices of the U.S.

treasuries rose, according to the People's Bank of China and State

Administration of Forex Reserves (SAFE). 

     FX reserves rose by USD1.51 billion to USD3.112 trillion as of June 30,

according to data released Monday by the PBOC, compared with a decline of

USD14.23 billion in May. 

     "The forex market was stable in June and international payment remained

balanced," SAFE, a division of PBOC, stated on its website. 

     Non-dollar currencies depreciated against the dollar, as the dollar index

rose 0.5% in June, while asset prices were changed, together contributing to a

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

     SAFE said FX reserves should remain stable, supported by a good momentum of

economic growth. However, it warned that the reserves would be volatile due to

uncertain external effects, including U.S. trade protectionism, the Federal

Reserve's rate hikes and book shrinkage, and tight liquidity in the global

market. 

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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