8 months in a row above $3.2 trillion --
my country's foreign exchange reserves maintain steady growth
Our reporter Yao Jin
Driven by the high level of foreign trade, the scale of my country's foreign exchange reserves has rebounded for three consecutive months.
On January 7, data from the State Administration of Foreign Exchange showed that as of the end of December 2021, my country's foreign exchange reserves were US$3,250.2 billion, an increase of US$27.8 billion, or 0.86%, from the end of November.
The previous two months rose by $17 billion and $4.8 billion respectively, and the full year rose by $33.6 billion.
So far, the scale of foreign exchange reserves has been above US$3.2 trillion for eight consecutive months, hitting a new high since 2016.
"In December 2021, the foreign exchange market was generally stable, and cross-border capital flows were active and orderly," said Wang Chunying, deputy director of the State Administration of Foreign Exchange and press spokesperson. Affected by other factors, the US dollar index fell, and the prices of financial assets in major countries were mixed.
Foreign exchange reserves are denominated in the US dollar, and the amount of non-US dollar currencies converted into US dollars increases, which, in conjunction with changes in asset prices and other factors, increased the scale of foreign exchange reserves in the month.
"Real trade and cross-border capital flows have contributed to the steady growth of foreign exchange reserves." Wen Bin, chief researcher at China Minsheng Bank, said that relevant indicators show that overseas demand is still strong, which is expected to support my country's exports.
In December 2021, the cumulative net inflow of northbound funds reached 89 billion yuan, a new high for monthly net inflows in 2021, which supported the steady increase in the scale of my country's foreign exchange reserves.
The steady growth of foreign exchange reserves is an important indicator that my country's economic fundamentals continue to improve.
Industry insiders believe that the scale of foreign exchange reserves will continue to remain stable in the future.
This is because the long-term sound foundation of my country's economy has not changed, and a series of policies to stabilize growth have been introduced and implemented, which are expected to keep the economy operating within a reasonable range, laying a foundation for the stability of foreign exchange reserves.
At the same time, my country continues to advance its opening to the outside world. International investors are optimistic about China's development prospects, and relevant securities investment is expected to remain stable, which will help promote the balance of payments and foreign exchange supply and demand to maintain a basic balance.
"In the next stage, my country's macro policy will continue to take the lead, focus on me, increase efforts to support the expansion of domestic demand and stabilize external demand, and keep the economy operating within a reasonable range. At the same time, it is necessary to guard against the risk of the Fed's monetary policy turning and 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." Wen Bin said.
Wang Chunying said 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, my country has made overall plans to promote epidemic prevention and control and economic and social development. The fundamentals of strong economic resilience and long-term improvement have not changed, which is conducive to the overall stability of the scale of foreign exchange reserves.