China’s FX Reserves Rose for Third Month as Outflows Stay Muted

(Bloomberg) -- China’s foreign-currency holdings rose last month, signaling that capital outflow pressures remain muted.

• Reserves climbed to $3.112 trillion from $3.102 trillion in the previous month, the People’s Bank of China said on Tuesday.

Key Insights

• The reading is lower than the median estimate of $3.119 trillion in a Bloomberg survey of economists
• The value of gold reserves rose again to $110.8 billion
• Table: China’s End-June Forex Reserves at $3.1123 Trillion
• “Capital outflow pressures may have eased a bit, as the yuan appreciated against the dollar by 1.1% last month,” Wang Tao, chief China economist at UBS Group AG in Hong Kong, wrote in a note before the data release. “We estimate June’s valuation effect from reserve currencies’ movement was a gain of $9 billion.”

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• “The depreciation of the greenback and rising asset prices of major economies have pushed up the size of reserves, according to a statement from SAFE

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