Yuan has come roaring back - UOB

Analysts at UOB Group noted that on Sunday, the People’s Bank of China reported Chinese foreign reserves climbing US$20.7 billion to US$3.14 trillion in December, posting an 11th straight monthly increase, capping a year of recovery amid tighter capital controls, a stronger yuan and resilient economic growth. 

Key Quotes:

"With that, the full year 2017 foreign reserve increase was US$129 billion. The world’s largest foreign currency stockpile has been steadily rebounding since January, when it fell below US$3 trillion for the first time in almost six years after the central bank propped up the yuan."

"The currency has come roaring back with authorities keeping a tight grip on money flowing out of the country and full-year economic growth set to pick up. China’s currency regulator, the State Administration of Foreign Exchange, cited gains in the value of non-dollar currencies for last month’s increase and said the nation’s economic performance had contributed to stable crossborder capital flows for the year. Looking ahead, SAFE predicted that the reserves, and the balance of payments, would be “stable.”"