China’s foreign reserves were $3.052 trillion in October, up $23.5 billion or 0.77 percent from September, according to data released by the State Administration of Foreign Exchange (SAFE) on Monday. Experts said the number was about what they expected.
According to the SAFE, the size of foreign exchange reserves went up in October because of things like changes in exchange rates and changes in the prices of assets.
Even though the global economic downturn and inflationary pressures are still strong and major developed economies are still tightening their monetary policies, the SAFE said in a statement on Monday that China’s economy is strong and has a lot of growth potential.
There is a lot of room to move, and the long-term positive fundamentals won’t change, the SAFE said, adding that the government will keep working to keep the foreign exchange reserves of the country stable as a whole.
Experts say that even though the world is uncertain, China’s foreign reserves are stable, which is as expected.
Dong Dengxin, director of the Finance and Securities Institute at Wuhan University of Science and Technology, told the Global Times on Monday that China’s foreign exchange reserves grew by a small amount in October. This is in the middle range for China’s foreign exchange reserves.
The expert said that China’s current foreign exchange reserves are a good sign for the country’s foreign trade companies and the country’s economic recovery.
“We make China’s real economy more liquid by increasing foreign reserves and increasing the supply of currency,” Dong said.
The SAFE says that China’s foreign exchange reserves have become much more stable over the past ten years.
In 2021, transactions in China’s foreign exchange market reached $36.9 trillion, a threefold increase from 2012. China is now the eighth-largest foreign exchange market in the world. More than 40 currencies can be traded there.
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