China News Service, Beijing, January 7 (Reporter Xia Bin) China's foreign exchange reserves have achieved "three consecutive rises."
According to data released by the State Administration of Foreign Exchange (hereinafter referred to as the “Foreign Exchange Administration”) on the 7th, as of the end of December 2021, China’s foreign exchange reserves amounted to US$3.25 trillion, an increase of US$27.8 billion from the end of November, an increase of 0.86%. It rose by about 33.6 billion U.S. dollars in the year.
In addition, as of the end of December 2021, China’s gold reserves were 62.64 million ounces, the same as at the end of December 2020; in terms of SDR (Special Drawing Rights), China’s foreign exchange reserves were 232.221 billion SDR.
Wang Chunying, deputy director of the State Administration of Foreign Exchange and spokesperson, told reporters that in December 2021, the foreign exchange market will generally operate smoothly and cross-border capital flows will be active and orderly.
In the international financial market, affected by factors such as the progress of the new crown pneumonia epidemic and the monetary policy expectations of major countries, the US dollar index has fallen, and the prices of major countries’ financial assets have fluctuated.
Foreign exchange reserves are denominated in U.S. dollars, and the amount of non-U.S. currencies converted into U.S. dollars increases. Together with changes in asset prices and other factors, the scale of foreign exchange reserves increased in the current month.
Wang Chunying emphasized that the current global epidemic and the world economic situation are complex and severe, and the international financial market is still facing many unstable and uncertain factors.
However, China has coordinated efforts to promote epidemic prevention and control and economic and social development, and the fundamentals of strong economic resilience and long-term improvement have not changed, which is conducive to maintaining overall stability in the scale of foreign exchange reserves.
Wen Bin, chief researcher of China Minsheng Bank, said that in the next stage, China's macroeconomic policies will continue to take the lead and focus on me, step up efforts to support the expansion of domestic demand, stabilize external demand, and maintain economic operations within a reasonable range.
At the same time, it is necessary to guard against the risk of the Fed’s monetary policy shift, stabilize exchange rate expectations, promote the two-way fluctuation of the RMB exchange rate at a balanced and reasonable level, and provide a safe and stable financial environment for economic recovery.
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