Business & Economy

China’s foreign exchange reserves dip in June

Beijing, July 7 (EFE).- Chinese foreign exchange reserves fell in June to $3.21 trillion, down from $3.22 trillion a month ago, official data showed on Wednesday.

The reserves dipped after rising in April and May.

Wang Chunying, a spokesperson for the State Administration of Foreign Exchange (SAFE), said the $7.8-billion decrease was due to many factors influencing the international financial market.China’s foreign exchange reserves fell in June to 3.21 trillion

Wang said the Chinese economy was stable with solid fundamentals to stabilize the reserves.

She explained in a statement that the foreign reserves in China were denominated in the American currency.

Assets in non-American currencies declined in value after conversion, Wang said after the People’s Bank of China released the data.

She said the prices of financial assets in world economies increased and were influenced by factors such as the fiscal policies of economic powers, the Covid-19 pandemic, and the vaccination progress in the world.

“Combined with the changes in asset prices and other factors, the scale of foreign exchange reserves (in China) decreased in June.”

Wang noted that “foreign exchange transactions operated in a reasonable range”.

Even though international financial markets faced risks, the performance of the Chinese economy “has strengthened,” she said.

It would “help maintain the stability of foreign exchange reserves,” she said. EFE


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