China’s foreign exchange reserves shrank in January as prices of financial assets generally fell in the face of the appreciation of the dollar, according to data released Monday by the National Administration of Foreign Exchange.
China’s foreign exchange reserves fell to $3,221.6 billion at the end of January, down $28.5 billion, or 0.88 percent, from the end of 2021.
“The foreign exchange market maintained stable operation in January, with domestic currency supply and demand remaining broadly balanced,” said Wang Chunying, deputy director of administration.
Ms. Wang attributed the decline to the impact of factors such as monetary policy expectations in major economies, geopolitical and macroeconomic data, which contributed to the appreciation of the dollar index and the evolution asset prices.
Despite the COVID-19 pandemic, growing external uncertainties and global financial market volatility, the resilience of the Chinese economy has remained strong, with great potential and sound long-term foundations, which will provide strong support for the stability of the country’s foreign exchange reserves, she added.