BUSINESS China's forex reserves rise in December


China's forex reserves rise in December


21:05, January 07, 2021

File photo: China Daily

BEIJING, Jan. 7 (Xinhua) -- China's foreign exchange reserves expanded to 3.2165 trillion U.S. dollars at the end of December, as the country's forex market remained generally stable, official data showed Thursday.

The amount was up by 38 billion dollars, or 1.2 percent, from the end of November, according to the State Administration of Foreign Exchange (SAFE).

The December figure was a new high since May 2016, according to Wen Bin, chief analyst at China Minsheng Bank.

Commenting on the December rise, SAFE spokesperson Wang Chunying said the market was "basically stable" with orderly and rational transactions.

Due to development of the COVID-19 vaccine and the monetary and financial policies of major economies, the dollar index saw a decline while non-U.S. dollar currencies went up in December, said Wang.

The spokesperson attributed the December growth in forex reserves to the combined effects of currency translation and changes in asset prices.

For the whole of 2020, eight months logged month-on-month growth, indicating that the steady functioning of the country's forex market had a solid foundation, said Wen.

Wang also expected China's foreign exchange market to run in a steady and balanced manner and the scale of forex reserve to remain generally stable, despite uncertainties in the international financial market amid virus-induced risks and complicated global economic outlook.

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue