China’s foreign reserves rose for the fourth consecutive month in May to hit USD$3.045 trillion as of the end of the month, with the authorities crediting ongoing gains to market liberalisation.
The $24.03 billion increase in May marked the biggest monthly gain in the world’s largest pol of foreign reserves since the start of the year.
The increase was well ahead of consensus expectations amongst analysts surveyed by Bloomberg, who anticipated an increase of $16.5 billion to $3.046 trillion.
According to China’s State Administration of Foreign Exchange the rise in the country’s foreign reserves is partially due to the “effects of greater financial market liberalisation.
A faltering dollar also helped to raise the value of China’s foreign reserves, as have tightening credit controls, that include plans to collect data on Chinese nationals whose overseas transactions exceed 1,000 yuan starting on September 1 this year.