China’s foreign exchange reserves rose by $19.8 billion to reach $3.2457 trillion at the end of March, marking a 0.62 percent increase from the previous month, according to data released by the State Administration of Foreign Exchange (SAFE) on Sunday.
The SAFE attributed the growth to multiple factors, including fluctuations in global exchange rates and changes in asset prices. “In March, the foreign exchange market operated steadily, and cross-border capital flows were generally balanced,” the agency noted in a statement.
The increase comes amid ongoing shifts in the international financial landscape, with major currencies and asset values experiencing volatility due to geopolitical tensions and economic uncertainties. China’s substantial forex reserves, the largest in the world, play a crucial role in maintaining the country’s financial stability and supporting its economic policies.
Analysts suggest that the rise in reserves reflects China’s prudent fiscal management and its resilience to external shocks. “The uptick in forex reserves demonstrates China’s ability to navigate complex global financial conditions,” said Li Wei, a senior economist at the China Development Research Foundation.
Looking ahead, the SAFE expressed confidence in the continued stability of China’s foreign exchange reserves, citing the country’s steady economic recovery and balanced international payments. “The fundamentals of China’s long-term economic growth remain unchanged,” the agency stated.
Reference(s):
cgtn.com
