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China's FX Reserves End Yearlong Rising Streak on Valuations

  • SAFE attributed to weaker assets prices, non-dollar currencies
  • The drop is in normal range, no need to be worried: analyst
Updated on

China’s foreign currency holdings decreased for the first time in more than a year, as rising U.S. Treasury yields weighed on valuations.

China’s stockpile, the world’s largest, increased last year for the first time since 2014 as robust economic growth boosted confidence in the yuan and trade remained upbeat. Still, U.S. trade tensions and tax cuts may renew capital outflow pressure in China and other emerging-market economies.