China’s forex reserves edged higher in March on the back of continued dollar weakness and anticipations of a trade war with the U.S., suggesting confidence in the economy.
Reserves grew by $9 billion last month to $3.143 trillion, according to data from China’s central bank, exceeding expectations of a $6 billion rise (Reuters poll). This was a rebound from the $27 billion drop in reserves seen in February.
The yuan also rose 0.8% against the greenback in March, making the first three months of 2018 its strongest quarter in a decade. This is a continuation of the Chinese currency’s strong 2017, during which it ended three years of depreciation to rise 6.8% against the dollar.