China's forex reserves rise in October

BEIJING, 7th November, 2015 (WAM) -- China's foreign exchange reserves rose to 3.53 trillion U.S. dollars at the end of October, the central bank announced on Saturday.

The reserves grew by 11.4 billion dollars in October, ending five months of decline, according to the People's Bank of China.

Gold reserves climbed from 61.2 billion dollars at the end of September to 63.3 billion dollars at the end of October, state news agency, Xinhua, said, citing the apex bank.

Fuelled by exports, forex reserves grew for more than a decade before beginning their decline in the third quarter of 2014. In the third quarter of 2015, forex reserves fell by 180 billion U.S. dollars, much more than the 40 billion U.S. dollar decrease in the second quarter, a fifth consecutive quarterly drop.

In September, China's central bank advisor Huang Yiping dispelled worries that the forex reserves are running out following a record fall in August, saying intervention in the market will not persist.

On Aug. 11, the central bank decided to let the market have a greater say in forming the yuan's central parity rate against the U.S. dollar, which led to a depreciation of more than 4 percent in August.

The current intervention is due to concerns over excessive fluctuations of the exchange rate, but China's ultimate goal is to make market supply and demand play a larger role in the rate formation system.


WAM/tfaham