China’s foreign reserves back up over US$3 trillion
The increase of US$6.9 billion is a shift from recent trends that were seen as an effort to prop up the yuan.
China’s central bank reported Tuesday that, despite a steady decline in recent months, the country’s foreign reserves rose in February past the US$3 trillion mark, according to Chinese state media. The growth represents an almost 7 billion dollar increase over the January number, in a dramatic shift from moves that were seen as an effort to prop up China’s currency. This is a sign that China sees their currency stabilizing and capital controls proving effective, but an expected US interest rate hike will surely put this to the test.