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Bloomberg
The value of China’s foreign-currency holdings edged up in December due to valuation effects and a possible easing of capital outflows due to a stronger yuan.
Reserves climbed to $3.1079 trillion from $3.0956 trillion in November,People’s Bank of China said. The reading is slightly lower than median estimate of $3.11 trillion in a Bloomberg survey.
“Capital outflow pressures may have eased a bit in December, as the yuan appreciated by 0.9% at end-December versus end-November,†Wang Tao, chief China economist at UBS Group AG, wrote. “We estimate December’s valuation effect from reserve currencies’ movement at a gain of $15-20 billion,†as the dollar weakened against other reserve currencies and boosted the value of assets denominated in euro, yen, she wrote.