According to the People’s Bank of China, the country’s foreign exchange reserves increased by $16.98 billion to $3.109 trillion from August. It is the highest reading since October 2016.
In August, the reserves made up $3.92 trillion, which is $10.81 billion higher than the preceding figure.
MarketWatch reported that the Chinese authorities tightened control over capital flows in attempt to stop outflows of funds. Strengthening of the yuan against the US dollar reduces the need to use funds from foreign exchange reserves for supporting the national currency.
Earlier, China’s central bank abolished two rules imposed for the yuan devaluation. This means there are no worries over the yuan exchange rate. The PBOC is more concerned by the currency’s strengthening.