Growth in forex reserves slows

China’s foreign-exchange reserves grew by US$11.9 billion in June, the smallest proportional increase in over two years, the Financial Times reported. The People’s Bank of China said reserves, which grew by a record US$75.5 billion in April and US$40.3 billion in May, stood at US$1.81 trillion at the end of June. It remains unclear whether the slowdown in growth is the result of policies designed to curb inflows of speculative money or other rules that change the way foreign currency is distributed within China’s banking system.