China’s FX Reserves Snap Five-Month Increase With Small Decline

(Bloomberg) -- China’s foreign-currency holdings posted the first monthly decline in six months amid a stronger dollar and higher U.S. Treasury yields.

• Reserves dropped to $3.095 trillion in April from $3.099 trillion in March, the People’s Bank of China said Tuesday

Key Insights

• The reading fell short of the median estimate of $3.1 trillion in a Bloomberg survey of economists
• A stronger dollar and higher U.S. long-term Treasury yields “point to a moderately negative valuation effect” on the stockpile, according to a note written by China International Capital Corp economists including Eva Yi before the release.

To contact Bloomberg News staff for this story: Yinan Zhao in Beijing at yzhao300@bloomberg.net

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James Mayger

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With assistance from Bloomberg