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China's foreign reserves rise following capital controls
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Construction workers take a break outside of a construction site in central Beijing, Tuesday, Feb. 28, 2017. Despite a cooling economy, Beijing has one of the world's highest office rental costs as authorities accelerate plans to establish the capital as an international financial center.
(AP/Mark Schiefelbein)
C
hina's foreign exchange reserves rebounded unexpectedly from a six-year low in February after Beijing imposed controls to stop a flood of capital leaving the world's second-largest economy.
Official data Tuesday showed the reserves rose by a relatively modest $6.9 billion to just over $3 trillion, but private sector analysts had expected them to shrink.
The central bank is spending the reserves to shore up the exchange rate of China's yuan after expectations it would decline led companies and small investors to move money out of the country. The reserves are down from a peak of $3.99 trillion in June 2014.
That outflow prompted Beijing to tighten controls late last year by stepping up scrutiny of proposed foreign investments and banning some activities by individual investors. (dan)
