China FX Regulator Says Modest Falls in Foreign Exchange Reserves Can Be Tolerated
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China's foreign exchange regulator has said that recent declines on the country's foreign exchange reserves are the result of the depreciation of non-U.S. dollar currencies and the financing of a large number of economic projects in Eurasia.

Wang Yungui, a head at the State Administration of Foreign Exchange, made the remarks at a press conference held by the regulator in Beijing on Thursday.

Wang said that modest falls in foreign exchange reserves are something that can be tolerated.

He also added that there is no basis for a sharp drop of the Chinese currency given that the country's international balance of payment position remains sound.

China's foreign exchange reserves, the world's largest, fell 0.03 percent last month to $3.44 trillion U.S. dollars, the lowest level since February 2013 and the third-largest monthly drop on record.

At the same time, the regulator said targeted measures by policymakers have helped limit capital outflows and to curb speculation around the yuan.

The regulator has investigated numerous cases of illegal capital outflows and had cracked down on underground banking.

Last month, Chinese authorities uncovered the country's biggest underground banking case involving transactions over 63 billion U.S. dollars.

Author： 　　　Source：CRI　　　 Editor：Yang Fan