China’s forex reserves fell by $51.3 bn in Feb due to changes in asset prices amid dollar strengthening
China’s forex reserves fell by $51.3 bn in Feb due to changes in asset prices amid dollar strengthening

China’s forex reserves fell by $51.3 bn in Feb due to changes in asset prices amid dollar strengthening

China’s foreign exchange reserves fell to $3.13 trillion in February, according to data released by the PBOC, a decrease of $51.3 billion from the previous month, and compared to expected $3.16 trillion.

China’s official gold reserves stood at65.92 million ounces (about 2,050.34 tons) at the end of February, an increase of 800,000 ounces (about 24.88 tons) from the previous month, rising for the fourth consecutive month, according to data released by the PBOC.

The decline in the foreign exchange reserves in February was mainly due to the combined impact of exchange rate conversion and changes in asset prices, said the State Administration of Foreign Exchanges. 

Influenced by global macroeconomic data and expectations for adjustments on monetary policies in major economies, the US dollar index gained in February and the overall prices of global financial assets declined, the SAFE said. 

China is striving to promote steady economic recovery and facilitate high-quality development, as the economy has tremendous potential and development momentum, which will help stabilize the size of foreign exchange reserves, it added.