China’s forex reserves rise for 2nd consecutive month

China’s foreign exchange reserves rose for the second consecutive month in December, reaching $3.2 trillion, data from China’s forex regulator showed on Sunday.

The increase was driven by factors including exchange rate fluctuations and rising asset prices, according to the State Administration of Foreign Exchange (SAFE).

In a statement, SAFE said that China’s strong economic growth and steady progress toward high-quality development will provide support for the country’s foreign exchange reserves to remain stable.

At a meeting on foreign exchange management held this week, SAFE said that it will deepen reform and opening-up of the sector to better serve the high-quality development of the real economy in 2024. With a focus on supporting technological innovation and small and medium-sized enterprises, SAFE will work to facilitate cross-border trade and investment.

On the same day, SAFE also released data showing that China’s gold reserves increased by 7.23 million ounces in 2023 to 71.87 million ounces. December was the 14th consecutive month that China has increased its gold reserves.(CGTN)