BEIJING (AP) — China's foreign currency reserves have risen for a fourth month ahead of a possible U.S. interest rate hike that might put new pressure on Beijing's exchange rate controls.
Government data on Wednesday showed the reserves, the world's biggest, rose $24 billion in May to $3.05 trillion.
A sharp decline last year prompted Beijing to tighten controls on the outflow of money from the world's second-largest economy.
The Chinese controls could face a new test if the U.S. Federal Reserve decides at a meeting next week to raise interest rates. That would draw money out of China in search of higher returns, which could require Beijing to raise its own interest rates or further tighten controls on capital flows.
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