China says cross-border cash flows hit turning point in '17

January 18, 2018 - 12:04 am

HONG KONG (AP) — Financial regulators in China say cross-border capital flows hit a turning point in 2017 as foreign currency reserve levels stabilized after two years of declines.

Wang Chungying, a spokeswoman for China's State Administration of Foreign Exchange, said Thursday that the supply and demand of foreign exchange "have shifted to a basic equilibrium" thanks to calmer domestic and global market conditions.

China's foreign exchange reserves rose for 11 straight months from January-December, expanding by a total of $129.4 billion last year to $3.1 trillion dollars.

The reserves fell in 2015 and 2016 as the central bank spent other currencies trying to keep the yuan aligned with the dollar. Worries that the Chinese currency would decline had prompted investors to shift money out of the country.

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