China’s foreign exchange reserves stood at $3.029 trillion at the end of September, down $25.9 billion or 0.85% from August, according to data from the State Administration of Foreign Exchange (SAFE) released on Monday. Friday.
The country’s foreign exchange reserves fell slightly in the month due to factors such as the further rise in the dollar index, the combined effects of exchange rate translation and the drop in global financial asset prices, said Wang Chunying, deputy administrator and spokesperson for SAFE.
The dollar index – which tracks the greenback against a basket of six major pairs – has risen nearly 17% so far this year, fueled by aggressive rate hikes by the US Federal Reserve.
In a briefing with reporters, Wang pointed to the complex and gloomy external environment and mounting downward pressure on the world economy.
However, he reiterated that the strong resilience of the Chinese economy and the strong foundation for long-term growth favor the overall stability of China’s foreign exchange reserves.
Elsewhere in Asia, South Korea and Japan saw sharp declines in their foreign exchange reserves in September as both countries dipped into their coffers to prop up their local currencies in the face of continued dollar strength.
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South Korea’s foreign exchange reserves shrank by nearly $20 billion in September, suffering the second-biggest monthly decline on record, the country’s central bank said on Thursday.
In the rest of Asia, South Korea and Japan recorded sharp falls in their foreign exchange reserves in September
Japan’s foreign exchange reserves also shrank by a record $54 billion to $1.238 trillion in the month as the government intervened for the first time in 24 years to prop up the yen’s sharp depreciation, they showed. official data on Friday.
The currencies of some 90 developing countries have weakened against the dollar, with their governments pouring $379 billion into reserves to defend their currencies so far this year, UN data showed on Tuesday.
Article republished by the Chinese state media CGTN within the framework of an agreement between both parties to share content. Link to original article:https://news.cgtn.com/news/2022-10-07/China-s-forex-reserves-edge-down-0-85-in-September–1dVPi2EUSvC/index.html
