As of the end of March 2022, China’s foreign exchange reserves fell by $25.8 billion from the previous month to $3.188 trillion, the South China Morning Post on the 7th.
Citing statistics released the previous day by the People’s Bank of China’s State Administraion of Foreign Exchange, the media said that foreign exchange reserves fell 0.80% from February, falling for the third consecutive month.
The dollar conversion valuation of holdings fell as the U.S. Federal Reserve raised its key interest rate for the first time in nearly three years and the dollar rose against major currencies due to increased geopolitical risks such as the situation in Ukraine.
The market expected the figure to fall to $3.183 trillion from $3.2138 trillion at the end of February, but it actually exceeded $5 billion.
According to the Fed, the dollar’s index for major currencies rose 0.9 percent in March from the end of February. In addition to the rise in the dollar’s value, bond prices in major countries fell due to concerns over an economic slowdown caused by COVID-19 also dragged down the valuation.
As of the end of March, gold reserves remained at 62.64 million ounces (1948.32 tons), the same as the previous month. It has remained the same for 31 consecutive months.
In terms of dollar conversion, it was $121.6 billion, up $1.96 billion from $119.64 billion at the end of February.
“As the external environment, such as the global re-proliferation of COVID-19, becomes more complex and serious, volatility in the international financial market is increasing,” said Wang Chun-ying, deputy director of China’s National Foreign Exchange Administration.
Spokesman Wang Chun-ying explained, “As China is pushing for COVID-19 measures and economic development at the same time, the size of foreign exchange reserves remains stable overall.”
