China’s foreign exchange reserves continued to drop in May, Reuters reported Thursday, hitting a seven-month low as the dollar rebounded strongly.
Official data showed that reserves totalled $3.11 trillion as of the end of May, falling $14 billion from the previous month. The rate of the drop, however, slowed from April when the monthly decrease was close to $18 billion.
The yuan also fell 1.2% against the greenback for the second consecutive month, marking the end of a consistent bout of appreciation in the Chinese economy which is still up 1.7% for the year after a strong first quarter.