FX Reserves Dip Slightly in May

Bloomberg: China FX Reserves Slip to Four-Year Low on Strong Greenback

The world’s largest currency hoard fell by $28 billion to $3.19 trillion in May, the People’s Bank of China said in a statement Tuesday. That was almost in line with the $3.2 trillion median forecast of economists surveyed by Bloomberg.

"Depreciation expectations faded and the central bank didn’t burn its reserves to intervene in the foreign exchange market," said Li Wei, a China and Asia economist at Commonwealth Bank of Australia in Sydney. "The drop was largely due to the valuation effect of a strong dollar, which leads to the depreciation of other currencies."

Reserves increased SDR 34.9 billion.