China’s foreign exchange reserves increased in December, but the rise came in slightly below market expectations, according to official data released on Wednesday. The modest gain occurred as weakness in the U.S. dollar continued through the month.
The world’s largest stockpile of foreign reserves climbed by $11.5 billion in December, reaching $3.358 trillion, compared with a market forecast of $3.36 trillion. Reserves had stood at $3.346 trillion at the end of November, data showed.
Currency movements played a key role during the month. The Chinese yuan weakened by 1.22% against the U.S. dollar in December, while the dollar itself fell 1.23% against a basket of major global currencies, helping to support the overall value of China’s reserves.
