Industry news

China News Service, Beijing, September 7th, China’s State Administration of Foreign Exchange (hereinafter referred to as the “Foreign Exchange Administration”) released data on the 7th, showing that as of the end of August 2020, China’s foreign exchange reserves were approximately US$3.1646 billion, an increase of 10.2 billion from the end of July. The dollar rose by 0.3%. This is the fifth consecutive month that China’s foreign exchange reserves have increased from the previous month. Experts say that the scale of China’s foreign exchange reserves still has a basis for maintaining stability.

As of the end of August 2020, China’s gold reserves were 62.64 million ounces, unchanged for 11 consecutive months; in terms of SDR (Special Drawing Rights), China’s foreign exchange reserves stood at 2,230,306 million SDRs, a decrease of 1.993 billion SDRs from the end of July.

Wang Chunying, deputy director of the Foreign Exchange Administration and spokesman, said that in August, China's foreign exchange market remained stable, and foreign exchange supply and demand were basically balanced. In the international financial market, affected by the monetary policy expectations of major economies, macroeconomic data and other factors, non-US dollar currencies have generally risen relative to the US dollar, and asset prices have fluctuated. The combined effect of exchange rate conversion and asset price changes has resulted in an increase in the size of foreign exchange reserves that month.

Wen Bin, chief researcher of China Minsheng Bank, believes that in the next stage, China's foreign exchange reserves will still have a stable foundation. On the one hand, China’s economic recovery has continued to improve, domestic reforms have been deepened, and demand has accelerated. On the other hand, China has continued to implement higher-level opening-up policies, and its financial opening has continued to deepen, providing more convenient conditions for international investors to invest in RMB assets. , Which will help promote the inflow of cross-border capital and maintain the smooth operation of the foreign exchange market.

Wang Chunying said that at present, the global epidemic has not yet been fully controlled, and there are still many unstable and uncertain factors in the international economic and financial fields. However, China’s economy has recovered steadily and continued to develop towards a positive trend. It will continue to promote deeper reforms, implement a higher level of opening up, and accelerate the formation of a new development pattern with a major domestic cycle as the main body and a dual domestic and international cycle. It will continue to support the scale of foreign exchange reserves. Overall stable.