China’s foreign exchange reserves fell for the first time in a year last month to $3.13 trillion from $3.16 trillion in January (0.85%), according to official data released on Wednesday.
The dip has been attributed to other currencies’ depreciation against the dollar, representatives of the State Administration of Foreign Exchange said, alongside a correction in asset prices in February.
Other’s say that last month’s fall just reflects fluctuations in the exchange rate. “Our model suggests that the People’s Bank of China stayed largely on the sidelines,” Julian Evans-Pritchard of Capital Economics told Caixin Global. “China’s foreign exchange reserves suggest that the People’s Bank remained a minor player in the Forex Reserves market last month.”