China’s forex reserves expand in June to over USD 3 trillion

By: |
Published: July 7, 2020 6:41 PM

Wang said the uptick in the scale of forex reserves is affected by multiple factors, including exchange rates and changes in asset prices.

China's forex market in June reported generally balanced supply and demand, said SAFE spokesperson Wang Chunying.China’s forex market in June reported generally balanced supply and demand, said SAFE spokesperson Wang Chunying. (Representative image)

China’s foreign exchange reserves, the largest in the world has expanded to USD 3.1123 trillion last month, official data showed on Tuesday.

The amount increased by USD 10.6 billion, or 0.3 per cent, from the end of May, according to China’s State Administration of Foreign Exchange (SAFE).

China’s forex market in June reported generally balanced supply and demand, said SAFE spokesperson Wang Chunying.

As world’s largest exporter, China has accumulated a sizable amount of forex reserves over the years. But the pace of their growth slowed in recent years due to fall of global exports markets and focus to expand domestic consumption amid slowdown of the second largest economy.

Wang said the uptick in the scale of forex reserves is affected by multiple factors, including exchange rates and changes in asset prices.

Factors including the global spread of COVID-19 as well as monetary and fiscal stimulus of major economies led to the drop in the US dollar index and the rise in asset prices of major countries, Wang said state run Xinhua news agency reported.

Wen Bin, chief analyst at China Minsheng Bank, said cross-border capital inflows also contributed to the rise in scale, adding that renminbi assets are attracting more global investors.

Despite a complex external economic environment amid the COVID-19 pandemic, Wang said China’s economy, with multiple indicators marginally improved, is shifting towards a good momentum.

China has so far reported a total of 83,565 coronavirus cases and 4,634 deaths due to the disease.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Modi LIVE: Tax rules get easier, friendlier; faceless assessment, appeal, taxpayer charter; honesty honoured
2Sugar-coating: Mills to get higher prices to offset hike in cane rates
3Dues pile up: After power producers, machine suppliers say UP discoms owe them Rs 2,000 crore