China’s foreign exchange reserves expanded to $3.3164 trillion at the end of September, marking an increase of $28.2 billion, or 0.86 percent, compared to the previous month of August, according to data released by the State Administration of Foreign Exchange (SAFE) on Monday.
The growth in reserves was influenced by shifts in monetary policies across major economies and macroeconomic data, leading to a decrease in the U.S. dollar index and a general rise in global financial asset prices, SAFE stated in a press release.
Wen Bin, chief economist at China Minsheng Bank, highlighted the continued improvement in China’s export sector. “The rising competitiveness of new trade formats such as cross-border e-commerce, market procurement, and overseas warehousing has bolstered export growth,” Wen told CGTN.
“These innovative trading methods, along with strengthening trade ties under the Belt and Road Initiative, have sustained high export growth and stabilized cross-border capital flows,” he added.
Wen further emphasized that a series of policy initiatives in currency, real estate, and capital markets have significantly enhanced market confidence. “This upswing in sentiment has attracted international investors to Chinese assets at an accelerated pace, providing strong support for the stability of China’s foreign exchange reserves,” he noted.
The increase in foreign exchange reserves reflects the resilience of China’s economy amidst global economic fluctuations. Analysts suggest that the positive trend is likely to continue as China implements measures to promote sustainable growth and open its markets to global investors.
Reference(s):
China's foreign exchange reserves rise to $3.316 tln in September
cgtn.com
