The yuan fell against the greenback last month. BLOOMBERG Agencies China's foreign exchange
Agencies
China’s foreign exchange reserves, the world’s largest, fell by US$9.68 billion (HK$75.5 billion) to US$3.222 trillion last month, according to official data released yesterday, as the US dollar rose against other major currencies.
This came below the US$3.226 trillion total tipped by a Reuters poll of analysts and down from US$3.232 trillion in May.
The yuan fell 0.3 percent against the US dollar in June, while the greenback last month rose 1.1 percent against a basket of other major currencies.
Meanwhile, China’s central bank did not buy any gold for a second month in June, as the precious metal edged lower from a record high.
Bullion held by the People’s Bank of China was unchanged at 72.8 million troy ounces at the end of last month, data showed.
The central bank opted not to add to reserves in May, ending an 18-month buying spree that helped push gold prices to their highest ever.
Some analysts still believe that purchases will resume as the world’s second-biggest economy seeks to diversify its reserves and guard against currency depreciation.
About 20 central banks still expect to raise their gold holdings in the coming year, spurred by heightened geopolitical and financial risks, according to a World Gold Council report.
It is possible that soaring gold prices have deterred purchases.
The precious metal hit an all-time high above US$2,400 an ounce in May, and has since edged lower as investors wound back bets on US rate cuts this year.
When the PBOC published data on the May buying pause, gold suffered its biggest intraday fall in nearly three years.
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