At the end of June 2024, the Chinese mainland’s foreign exchange reserves stood at $3.2224 trillion, according to official data released by the State Administration of Foreign Exchange (SAFE) on Sunday. This marks a slight decrease of 0.3 percent compared to the previous month.
Factors Influencing the Decline
SAFE attributed the dip to a combination of currency translation and changes in asset prices. The fluctuation in foreign exchange reserves was influenced by factors such as the global foreign exchange market and the performance of financial assets, the administration noted.
“In June, due to the monetary policy adjustments by major economies and fluctuations in the international financial market, the U.S. dollar index fell, and the prices of global financial assets increased overall,” a SAFE spokesperson explained.
Economic Outlook Remains Positive
Despite the slight decrease, SAFE emphasized that China’s economy continues to recover steadily, and the fundamentals of long-term economic growth remain unchanged. The administration expressed confidence in the overall stability of the foreign exchange reserves.
The foreign exchange reserves are considered a key indicator of a country’s economic health, reflecting its ability to pay for imports and service its external debt. China’s vast reserves play a significant role in maintaining the stability of the global financial system.
Analysts’ Perspectives
Analysts believe that the slight decline is within expectations and does not signal major shifts in China’s economic outlook. The continued stability of the reserves amid global economic uncertainties underscores the resilience of China’s economy.
As the world’s second-largest economy, China’s economic performance is closely watched by investors and policymakers worldwide. The foreign exchange reserves’ stability is expected to continue supporting the global economy in the face of ongoing challenges.
Reference(s):
cgtn.com
