The US Treasury Department said on Monday that China's holdings were US$19.5 billion higher than in June and up by US$114.9 from January. China remains the largest foreign holder of US Treasuries, US$52.9 billion more than Japan. Further stabilised cross-border capital flows in the future will keep the foreign exchange reserve within a "reasonable and moderate" range, it said. The country's foreign exchange reserve grew for seven consecutive months to $3.09 trillion by August, after a seven-month drop to a record low of US$2.998 trillion in January. A stronger renminbi has boosted the increase in the foreign exchange reserve, while capital outflow pressures have been released, said Wen Bin, chief researcher with China Minsheng Bank.

Source: The China Post September 20, 2017 05:26 UTC