China’s PBoC said that the country’s foreign currency reserves dropped to USD 3.104T in July, down from USD 3.119T. The modest decline suggested that PBoC has refrained from selling foreign exchange directly for currency intervention. And according to economists, China’s capital inflows and outflows are roughly balanced. Thus, there is little need for PBoC to buy of sell foreign currencies.
State Administration of Foreign Exchange spokeswoman Wang Chunying said China’s economy has continued ” the overall stable, steady and progressive development trend, and the main macroeconomic indicators have remained within a reasonable range.” Also, ” cross-border capital flows have remained stable. ” Wang also dismissed claim of China as currency manipulator as groundless.
