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China’s forex reserves shrank by USD 22 billion in September.


Date: 08-10-2020
Subject: China’s forex reserves shrank by USD 22 billion in September
China's foreign exchange reserves stood at USD 3.1426 trillion at the end of September, down from USD 3.1646 trillion recorded at the end of August, the official data showed on Wednesday.

China’s foreign exchange reserves shrank to USD 3.1426 trillion, a dip of USD 22 billion, last month compared with August due to a host of factors including the COVID-19 pandemic abroad, the official media here reported on Wednesday.

China’s foreign exchange reserves edged down in September, ending a five-month rising streak since April, though the country’s foreign exchange regulator said that supply and demand dynamics and cross-border capital flow remain stable, state-run Global Times reported.

The decrease, at USD 22 billion or 0.7 per cent month over month, was due to a rise in the US dollar index and exchange rates, changes in asset prices, as a result of a number of factors including the resurgence of the COVID-19 pandemic abroad and monetary and fiscal policies adopted by the world’s major economies, the State Administration of Foreign Exchange (SAFE) said in a statement.

China’s foreign exchange reserves stood at USD 3.1426 trillion at the end of September, down from USD 3.1646 trillion recorded at the end of August, the official data showed on Wednesday.

However, Wang Chunying, a SAFE spokesperson, said the stable trend of China’s foreign exchange reserve remains stable as the favourable conditions enjoyed by the Chinese economy were unchanged and its policymakers’ toolkit remained ample, despite the still-complex pandemic situation and rising uncertainties in the global economy.

China’s gold reserves stood at 62.64 million ounces at the end of September, unchanged compared with that of the previous month, SAFE data showed.

Source:-financialexpress.com

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