China’s foreign exchange reserves rose for the 12th consecutive month in January, hitting the highest level since October 2016, Bloomberg reports.
Figures released yesterday from the People’s Bank of China show that reserves grew US$21.5 billion in January to reach US$3.16 trillion. This has been partly attributed to the strengthening of the yuan last month, which stands at its strongest level against the US dollar since 2015.
The Chinese currency has also been subject to strict capital controls in recent years, including tighter scrutiny of individual purchases of insurance plans abroad and of overseas asset acquisitions by companies.
“China does not face much pressure from capital outflow for now,” according to Hong Hao, chief strategist at Bocom International Holdings. “Pretty much all the loopholes in the capital control scheme have been plugged.”