Corrected second paragraph
China’s foreign exchange reserves increased in July, figures from People’s Bank of China showed Tuesday.
Reserves rose by $5.82 billion to $3.12 trillion in July. Reserves were forecast to remain at $3.11 trillion.
More likely, the increase simply reflects valuation effects from a rise in the price of the foreign bonds held by the PBoC, Julian Evans-Pritchard, an economist at Capital Economics, said.
That said, today’s figures do suggest that the PBoC probably did not deploy its FX reserves to defend the renminbi last month, the economist added.