Gold Silver Reports (GSR) – Reserves rose $8.34 billion to $3.143 trillion in March from the previous month, the People’s Bank of China said Sunday. That was slightly below the $3.146 trillion estimate survey of economists. The March figure marks a turnaround after falling in February for the first time in 13 months. The State Administration of Foreign Exchange expects the country’s foreign reserves will remain stable.
“China’s foreign exchange reserve rose amid a combination of factors in March,” SAFE said in a statement. “The supply and demand of foreign-exchange has been relatively stable while the foreign exchange market continues to be balanced. Risk aversion rose in international markets while non-dollar currencies have strengthened against the dollar.”
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China’s stockpile, the world’s largest, increased last year for the first time since 2014 as robust economic growth boosted confidence in the yuan and trade remained strong. Still, rising trade tension with the U.S. may lead to slower growth of the holdings, and even renew capital outflow pressure on emerging-market economies including China. – Neal Bhai Reports (NBR) INDIA
