Key facts
- China's foreign exchange reserves rose to $3.438 trillion in August.
- This represents an increase of $29.9 billion from the previous month.
- The rise exceeded market expectations.
- The increase was driven by currency translation effects and changes in asset prices.
- The U.S. dollar weakened against a basket of major currencies during August.
China's foreign exchange reserves, the world's largest, increased by more than anticipated in August, reaching $3.438 trillion. This marks a rise of $29.9 billion, or 0.91%, from the previous month's $3.419 trillion, surpassing the Reuters poll forecast of $3.425 trillion.
The strengthening of the yuan by 0.49% against the dollar during August, coupled with a 0.4% weakening of the dollar against a basket of major currencies, contributed to the increase. The State Administration of Foreign Exchange cited the combined impact of currency translation and changes in asset prices as the primary drivers for the growth in reserves. The administration also noted that global financial asset prices generally rose during the month.
According to the administration, China's economy continues to demonstrate steady growth, resilience, and vitality, which provides solid support for the overall stability of the country's foreign exchange reserves.