China's foreign exchange reserves fall to $3.65 trillion at end-July

BEIJING: China's forex reserves, highest in the world fell to $3.6513 trillion, decreasing by $42. 5 billion last month amid concerns over capital outflows and continued slowdown of the world's second largest economy, the Communist giant's central bank said today.

Also simultaneously China's gold reserves fell from $62.397 billion in June to $59.238 billion in July, data released by People's Bank of China (PBC) said.

Gold prices fell by more than four per cent to five-year lows last month as disposed gold worth about five tonnes in the Shanghai Gold Exchange last month.

PBC data showed that China's foreign exchange reserves decreased by a total of $42.5 billion in July, marking the third consecutive month of falling forex reserves.

China's forex reserves fell by 40 billion US dollars in the second quarter of 2015, marking a seven-quarter low and a four-quarter consecutive drop, state-run Xinhua news agency reported without assigning reasons.

China's growth stood at seven per cent in the first half of the year keeping up with the government target.

But at same Chinese leaders have been expressing concerns over the slowdown.

Chinese President Xi Jinping told a meeting of senior leaders of the ruling Communist Party of China, (CPC) on July 30 that the economy faced "some problems" but functioned well in general.

China's economy is functioning well in general, with some problems remaining that require the wisdom of all and solid efforts, he said.

The International Monetary Fund (IMF) in its recent forecast said China's economy will slowdown to 6.8 per cent this year followed by 6.3 per cent in 2016 and six per cent for 2017.