China’s central bank reported Tuesday that, despite a steady decline in recent months, the country’s foreign reserves rose in February past the US$3 trillion mark, according to Chinese state media. The growth represents an almost 7 billion dollar increase over the January number, in a dramatic shift from moves that were seen as an effort to prop up China’s currency. This is a sign that China sees their currency stabilizing and capital controls proving effective, but an expected US interest rate hike will surely put this to the test.
China’s foreign reserves back up over US$3 trillion
The increase of US$6.9 billion is a shift from recent trends that were seen as an effort to prop up the yuan.