In May China’s foreign exchange reserves saw their first increase since the start of 2022, further cementing their position as the world’s largest holdings of forex.
China’s foreign reserves increased by 0.26% in May compared to the preceding month, rising USD$80.6 billion to hit $3.1278 trillion in total, according to data released by the State Administration of Foreign Exchange (SAFE) on Tuesday.
May is the first month this year that China’s foreign reserves have increased, after previously posting four consecutive months of decline. It also marks the 25th month that China’s foreign reserves have remained above the $3.2 trillion threshold.
Guan Tao (管涛), chief economist with Bank of China International, said to state-owned media that the rise in China’s forex reserves in May was primarily due to slight declines in the US dollar index, leading to positive shifts in financial assets obtained from other major economies.