Official data indicates that China’s foreign reserves posted a modest increase in the final month of 2020.
China’s foreign reserves increased by USD$3.8 billion in December, for a 1.2% rise to reach $3.2165 trillion as of the end of 2020, according to figures released by the State Administration of Foreign Exchange (SAFE) on 8 January.
Wang Chunying, deputy-head of SAFE, said that China’s forex market remained stable overall, and that market transactions remained “rational and orderly.”
“In [December] foreign reserves rose, due to the joint role of factors including the US dollar index declining, and non US-dollar currencies and the asset prices of other key countries all rising,” said Wang.
Wang said that the global economy remained “complex and challenging,” and the shock of the COVID-19 pandemic had resulted in associated risk that cannot be ignored.
