China has chased the yuan bears back into the woods for the time being—but at the cost of its drive to make its currency a real rival to the dollar. After a hair-raising 2015 and 2016, which saw large-scale capital flight drive China’s foreign-exchange reserves down by a quarter, the sluice gates have closed. Reserves rose by $24 billion in July, marking the sixth consecutive bump higher. Part of that is just the greenback’s weakness, which boosts the value of China’s other foreign-currency reserves in dollar terms.

Source: Wall Street Journal August 07, 2017 11:48 UTC