China’s foreign exchange reserves fell less than expected in February as the RMB weakened on fears over the fast spreading coronavirus epidemic and its severe impact on economic activity, reported Reuters.
The country’s foreign exchange reserves – the world’s largest – fell $8.779 billion in February to $3.107 trillion, central bank data showed on Saturday.
Economists polled by Reuters had expected reserves would fall by $15.497 billion to $3.100 trillion, likely due to fluctuations in global exchange rates and the prices of foreign bonds that China holds.
Strict capital controls have helped China keep outflows under control over the past year despite a trade war with the United States and weakening economic growth at home. But the RMB fell 0.78% against the dollar in February, its first monthly drop since August, while the dollar rose 0.77% as investors shifted money from virus-hit Asia into US assets.