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China's success at propping up yuan lifts forex reserves as well

Beijing's tighter capital curbs contradict market reforms, raising concerns

The People's Bank of China has steered the yuan higher against the U.S. dollar.

BEIJING -- China's campaign to keep the domestic currency stable through tight capital controls proved successful last year, reducing the need for the central bank to tap the nation's vast foreign exchange reserves for yuan-buying market interventions.

China had $3.139 trillion in foreign exchange reserves as of the end of 2017, up $129.4 billion on the year and marking the first year-on-year increase since 2014. The amount rose $20.6 billion from the end of November for the 11th monthly climb. The reserve had declined $510 billion on the year in 2015 and $320 billion in 2016.

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