China’s foreign exchange reserves posed a sizeable decline in the month of June according to the latest data from the State Administration of Foreign Exchange (SAFE).
As of the end of June China’s foreign reserves stood at USD$3.0713 trillion, for a drop of $56.5 billion, or 1.81%, compared to the end of the previous month.
According to Wang Chunying (王春英), deputy head of SAFE, the decline was due to a marked appreciation in the US dollar index, which led to considerable declines in the financial assets of other major economies.
“Foreign exchange reserves are calculated in the US dollar, and the sums of non-dollar currencies declined following conversion, which alongside asset price shifts led to a decline in foreign exchange reserves that month,” he said.
