At the end of May, China's foreign exchange reserves reached 3.1278 trillion US dollars, a month-on-month increase of 0.26%
China News Service, Beijing, June 7 (Reporter Xia Bin) According to data released by the State Administration of Foreign Exchange on the 7th, as of the end of May 2022, China's foreign exchange reserves were US$3,127.8 billion, an increase of US$8.1 billion from the end of April, an increase of 0.26%.
In addition, China's gold reserves are 62.64 million ounces; in terms of SDR (special drawing rights), China's foreign exchange reserves are 2,317.388 billion SDR.
Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said that in May 2022, China's foreign exchange market will operate smoothly, and domestic foreign exchange supply and demand will remain basically balanced.
In the international financial market, affected by the monetary policies and expectations of major countries, global economic growth prospects, geopolitical situation and other factors, the US dollar index fell slightly, and the prices of financial assets in major countries were mixed.
The foreign exchange reserves are denominated in the US dollar, and the amount of non-US dollar currencies converted into US dollars increases. This is due to the combined effect of factors such as changes in asset prices. The scale of foreign exchange reserves increased in the month.
Wen Bin, chief researcher of China Minsheng Bank, said that in the next stage, the scale of China's foreign exchange reserves will continue to remain basically stable.
On the one hand, China's economy is resilient and has a lot of room for manoeuvre, and its long-term positive fundamentals have not changed.
On the other hand, the upward trend of inflation in the United States has slowed down, and the US dollar index has recently declined to a certain extent. The market's expectations for the future have changed, which is conducive to maintaining the RMB exchange rate at a reasonable and balanced level.
He also mentioned that China's domestic production still has advantages, trade in goods is expected to maintain a reasonable scale of surplus, international investors are also optimistic about China's development prospects, and the overall northbound capital is showing a net inflow.
The above factors will help to promote the basic balance of supply and demand in the foreign exchange market and stabilize the scale of China's foreign exchange reserves.
Wang Chunying also emphasized that the current external environment is still complex and severe, the risks and challenges facing the global economy are increasing, and there are still great uncertainties in the international financial market.
However, China has effectively coordinated epidemic prevention and control and economic and social development, and the long-term economic fundamentals have not changed, which will support the overall stability of the scale of foreign exchange reserves.
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