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China activities behind drop in forex reserves in November -forex regulator
December 7, 2016 / 8:49 AM / a year ago

China activities behind drop in forex reserves in November -forex regulator

BEIJING, Dec 7 (Reuters) - China’s foreign exchange regulator said on Wednesday that a few reasons, including the central bank’s activities in the foreign exchange market, are behind the fall in China’s foreign exchange reserves in November.

The State Administration of Foreign Exchange (SAFE) said in a notice on its website that the People’s Bank of China had to provide capital from its foreign exchange reserves to the market, in order to maintain a supply and demand balance in foreign exchange reserves.

Besides, fluctuation in asset values, change in bond prices, and non-U.S. dollar currencies’ depreciation against the dollar in the wake of U.S. election also contributed to the fall, SAFE said.

China’s foreign exchange reserves fell for a fifth straight month in November and by more than expected to the lowest since March 2011, as authorities struggled to shore up the sliding yuan currency in the face of a relentlessly rising dollar. (Reporting by Yawen Chen and Nicholas Heath; Editing by Richard Borsuk)

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