China’s foreign reserves remain above the $3.2 trillion threshold despite edging lower in August.
The State Administration of Foreign Exchange (SAFE) announced on 9 September that as of the end of August China’s foreign reserves stood at USD$3.2321 trillion, for a decline of $3.8 billion, or 0.12%, compared to the end of July.
Wen Bin (温彬), chief researcher with China Minsheng Bank, said that in spite of the decline China’s foreign reserves were still relatively stable, remaining above the $3.2 trillion threshold for the fourth consecutive month.
Wen said that a 0.5% rise in the US dollar index to 92.6 led to an overall decline in other major currencies relative to the greenback, with the pound depreciating 1.1%, the euro 0.5% and the Japanese yen 0.3%, leading to a diminution in China’s non-dollar foreign reserve assets.
He expects foreign reserves to remain steady in future as the Chinese economy continues to recover and export levels improve.