China’s foreign reserves lifted for the third consecutive month in January, with officials expecting levels to remain stable in the near-term.
Figures released by the State Administration of Foreign Exchange (SAFE) indicate that as of the end of January China’s foreign reserves stood at USD$3.087924 trillion, for an increase of $15.212 billion, or 0.5%, compared to the reading of $3.072712 the previous month.
SAFE spokesperson and chief economist Wang Chunying (王春英) said that China’s foreign exchange market remained “basically balanced” in January, while cross-border capital flows were steady overall.
According to Wang the modest appreciation in China’s foreign reserves was due to valuation factors arising from increases in non-US dollar currencies.
Wang said that at present global economic growth faces pressure and the international environment remains unstable with many uncertain factors.
“However, the Chinese economy continues to remain stable and the balance of payments is showing sovereign stability, providing a firm foundation for the stability of China’s foreign reserves.
“The Chinese economy will continue to maintain a positive development trend over the long-term and continue to drive comprehensive opening…foreign exchange market operating mechanisms are continually improving, cross-border capital flows are stable overall and forex market supply and demand is basically in balance.
“China’s foreign reserves are expected to maintain overall stability amidst fluctuation.”