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.