China's yuan funds for foreign exchange dip in March
BEIJING — The central bank's yuan outstanding for foreign exchange continued to drop in March, representing the 17th straight month of decline.
The funds declined 54.7 billion yuan ($8 billion) in March from February to 21.6 trillion yuan, data from the People's Bank of China showed Friday.
The decrease was less than the 58.1 billion yuan registered in February.
As the Chinese currency is not freely convertible under the capital account, the central bank has to purchase foreign currency generated by China's trade surplus and foreign investment in the country, adding funds to the money market.
China's forex reserves climbed to $3.009 trillion by the end of March from 3.005 trillion dollars a month earlier, still the largest foreign exchange reserve stockpile in the world.
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