The balance of China foreign reserves shrink at the end of October

China’s foreign exchange reserves experienced three consecutive declines since August, and the decline in October went further compared with that of September. On November 7th, the data released by the official website of the People’s Bank of China showed that the balance of foreign exchange reserves at the end of October was 3,053.098 billion US dollars, a decrease of 1.3% compared with September’s 3,087.025 billion US dollars. According to industry analysts, the scale of foreign exchange reserves continued to fall due to the combining factors such as the strength of the US dollar index and the tense trade situation. However, the scale of future foreign exchange reserves is expected to remain stable with slight volatility.

One reporter from Beijing Business Daily noted that since August, China’s foreign exchange reserves have declined for three consecutive months, and the decline has been further expanded. Relevant data shows that the foreign exchange reserve in August was 3,109.716 billion US dollars, down 8.23 ​​billion US dollars from the end of July, a decrease of 0.26% month-on-month. The foreign exchange reserve at the end of September was 3,087.025 billion US dollars, which was further reduced by 22.69 billion US dollars compared with August, a decrease of 0.7%. In addition, China’s gold reserve at the end of October was 71.968 billion US dollars, and the data at the end of September was 70.327 billion US dollars.

Regarding the changes in the size of foreign exchange reserves in October, Wang Chunying, a spokesperson for the State Administration of Foreign Exchange, said that in October, China’s cross-border capital flows were generally stable and the balance of payments was basically balanced. Affected by multiple factors such as the monetary policy of the major countries, the global trade situation, and the geopolitical situation, the international financial market became more volatile, the US dollar index increased by more than 2% and asset prices of major countries was adjusted. The combination of exchange rate conversion and asset price changes has led to a slight decline in the size of foreign exchange reserves.

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