BEIJING: China’s foreign exchange reserves fell more than expected in February, and posted their first decline in 13 months, as the yuan weakened against the US dollar amid wild swings in global financial markets.
Reserves fell US$27bil to US$3.13 trillion, compared with an increase of US$21.5bil in January, central bank data showed yesterday.
Economists polled by Reuters had expected reserves to drop by US$1bil in February to US$3.16 trillion.
Capital flight was seen as a major risk for China at the start of 2017, but a combination of tighter capital controls and a faltering dollar has helped the yuan stage a strong turnaround, bolstering confidence in the economy.
The value of China’s gold reserves fell to US$78.06bil by end-February, from US$79.68bil at end-January. — Reuters