China’s foreign exchange and gold reserves rose in September, supported by global bond rallies and a softer U.S. dollar, signaling resilience in the country’s external position despite a broader slowdown in central bank gold purchases worldwide.
Data released Tuesday by the State Administration of Foreign Exchange showed that China’s foreign exchange reserves reached $3.34 trillion at the end of September, an increase of $16.5 billion, or 0.5%, from the previous month. The agency attributed the gain to “combined effects of exchange rate movements and changes in asset prices,” noting that the rise reflected valuation improvements in global holdings as the dollar eased against major currencies.
Analysts said the modest uptick underscores the relative stability of China’s balance of payments and continued investor confidence in its external financial position, even as the People’s Bank of China faces pressure to support the yuan and stabilize capital flows.
