Reserves climb to US$243bn

China's foreign exchange reserves at the end of June totalled US$242.76bn, reflecting a year-on-year growth rate of 34 per cent, said central bank governor Dai Xianglong. The average monthly growth rate of US$5.1bn over the first six months of the year was just over twice as large as the US$2.54bn achieved in the same period last year. Analysts attributed the increase to robust export growth and the continuing inflow of capital investment. They also said that the faster-than-expected increase would assist the introduction of exchange rate flexibility and the relaxation of exchange rate controls.