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China's foreign exchange reserves continued to increase in November, data from the People's Bank of China showed Thursday.

Forex increased by $10 billion to $3.12 trillion in November. This was the tenth consecutive rise in reserves. The reserves for November came in line with expectations.

Foreign exchange reserves suggest that capital outflows continued to be a non-issue last month, Julian Evans-Pritchard, an economist at Capital Economics, said.

This has allowed the PBoC to step back from FX intervention which, over the medium term, should be supportive of renminbi appreciation, the economist said.

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