Yuan Advances as PBOC's Reserves Signal Capital Outflows Eased
- Central bank's currency hoard rises first time since October
- Funds exodus slows on stable yuan, dollar weakeness: analyst
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The yuan strengthened in Shanghai as China’s foreign-exchange reserves rose for the first time in five months, indicating decreased depreciation pressure and slower capital outflows.
The world’s largest currency hoard unexpectedly increased by $10.3 billion to $3.21 trillion last month, the People’s Bank of China said in a statement Thursday. That was the first gain since October and compared with a $6.3 billion decrease expected by economists surveyed by Bloomberg. The stockpile posted the first-ever annual decline last year as the monetary authority sold the greenback to prop up the yuan.