Beijing: China’s foreign exchange reserves rose modestly in May for a fourth straight month and by more than markets had expected, as stringent capital control measures and a weakening dollar helped staunch outflows.
Reserves rose $24bnin May to $3.054 trillion, compared with an increase of $21bn in April to $3.03 trillion, central bank data showed yesterday.
It was the first time that reserves had climbed for four months in a row since June 2014.
Economists polled by Reuters had expected reserves to rise $10bn to $3.04 trillion.
China has tightened rules on moving capital outside the country in recent months as it seeks to support the yuan currency and stem a slide in its foreign exchange reserves.
It burned through nearly $320bn of reserves last year but the yuan still fell about 6.5 percent against the dollar, its biggest annual drop since 1994.
After steadying early this year in response to a flagging dollar, the yuan suddenly bolted to near seven-month highs in recent weeks after the central bank changed the way it calculates its official daily reference point to quash expectations of further depreciation.
