Business & Economy

Chinese foreign exchange reserves at 4-year high

Shanghai, China, Dec 8 (efe-epa).- The foreign exchange reserves of China rose to a four-year high of $3.179 trillion by the end of November, according to official data released on Tuesday, amid a steady run of the Chinese forex market.

The figure is the highest since August 2016. It has witnessed a hike of $50.5 billion or 1.61 percent from the October end, State Administration of Foreign Exchange data noted.

The rise also ended a decline of two consecutive months, which, according to the foreign exchange regulators, was $3.128 trillion in October and $3.143 trillion in September.

The Chinese central bank on Tuesday also said that the yuan fared strongly in daily trading reference at 6.536 per US dollar, the strongest since July 2018, according to the state newspaper China Daily.

SAFE spokesperson Wang attributed the yuan’s strong run against the dollar to the progress in vaccine development and expectations on the monetary and financial policies of major economies.

Wang also pointed to the drop in the dollar index and the appreciation of other currencies against the US.

Wang noted that the monthly rise in foreign exchange reserves was due to the combined effects of currency translation and changes in asset prices.

Wang predicted that the foreign exchange reserves of China would maintain a “stable pattern” in the future.

She, however, sounded a note of caution since the Covid-19 pandemic had “significantly increased” global economic uncertainty and generated more risks in international financial markets. EFE-EPA


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