indian economy, india forex reserves, rbi data, india stock markets, indian rupee vs us dollar
Representational image of US dollars.IANS

China's foreign exchange reserves are almost 10 times more than that of its biggest neighbour, India, based on the figures released by People's Bank of China (PBoC) for June.

PBoC said that its foreign exchange reserves rose $13 billion last month to $3.21 trillion by the end of the month. In contrast, India's foreign exchange reserves stood at $361 billion as of June 24, declining $3 billion, according to data released by the Reserve Bank of India (RBI) on July 1.

China posted its biggest rise in forex reserves in 14 months, though the country did not reach its June 2014 high of $4 trillion, the Business Insider Australia reported. The reserves had declined $27.93 billion in May.

Analysts are attributing the spike in the country's foreign exchange reserves to various reasons, including intervention by PBoC, the equivalent of India's RBI.

"... although today's data don't offer a clear picture on the direction of capital flows there is little doubt that the flows remain much more manageable than in late-2015 and early-2016, when China was witnessing outflows of over $120bn per month," Julian Evans-Pritchard and Mark Williams of Capital Economics wrote in a note, said Business Insider Australia.

Another reason being attributed to the surge is the appreciation in the Japanese currency yen, which gained almost 7 percent in June, the South China Morning Post said, referring to Bank of China researcher Wang Youxin.

Britain voting to quit the European Union in a referendum also contributed to the strengthening of the yen and the US dollar.

But Business Insider Australia summed it up, saying "basically, nobody has any clue what's going on in China."

China holds the largest foreign exchange reserves in the world.