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China's foreign exchange deposits rose for the 10th straight month in May to an historic high, official central bank data showed, even as the yuan extended gains against the dollar.
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* Balance of China's foreign exchange deposits rose to US$1.16 trillion at the end of May, up 17.5 percent from a year earlier. Such deposits grew US$103.2 billion (HK$808.78 billion) in the first five months of this year, the People's Bank of China (PBOC) data showed.
* FX demand deposits held by non-financial enterprises rose US$17.1 billion, serving as the primary source of growth in FX deposits last month, according to detailed data from the central bank's balance sheet released late on Tuesday.
* FX deposits held by households also expanded for four consecutive months to US$166.2 billion, PBOC data showed.
* China's commercial banks purchased a net US$35.8 billion of foreign exchange in May, the FX regulator said on Monday.
* Several Chinese banks have raised dollar deposit rates in recent weeks, sources told Reuters earlier this month, in a move some traders say is likely aimed at slowing the pace of yuan appreciation.
* China's yuan has strengthened about 3.5 percent against the dollar so far this year to become one of the best performing emerging market currencies.
* China's strong exports and expanding trade surplus continue to inject high volumes of foreign currency, mostly US dollars, into the domestic financial system. China recorded US$105.43 billion of trade surplus in May, customs data showed.
Reuters
