China’s Foreign Reserves Rise for the Fifth Consecutive Month in August to Four Year High


Official data indicates that China’s foreign reserves continued to post gains in the month of August.

Figures released by the State Administration of Foreign Exchange (SAFE) on 7 September indicate that as of the end of August 2020 China’s foreign reserves stood at USD$3.1646 trillion yuan, for a rise of $10.2 billion, or 0.3%, compared to the end of July.

“In August China’s forex market maintained stable operation, and forex supply and demand were basically balanced,” said Wang Chunying (王春英), deputy-head of SAFE.

“As a result of factors including expectations of the monetary policies of major economies and macro-economic data, non-US dollar currencies rose in general compared to the US dollar, and asset prices saw mixed rises and declines.

“Overall, exchange rate conversions and asset price shifts led to a rise in the scale of foreign reserves that month.”

The US Dollar Index fell by 1.3% in August, while the euro rose 1.3% against the dollar, and the British pound rose 2.2%.

Wen Bin (温彬), chief researcher with China Minsheng Bank, said that China’s foreign reserves had risen for five consecutive months in August to reach its highest level since October 2016.

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