China's foreign exchange reserves dropped by 7.8b US dollars, or 0.24%, to 3.214bn US dollars by the end of June, according to the State Administration of Foreign Exchange (SAFE) on Tuesday.
Wang Chunying, deputy director and spokeswoman of the State Administration of Foreign Exchange, said the foreign exchange market operated smoothly in June and foreign exchange transactions remained rational. In the international financial market, influenced by factors such as the COVID-19 epidemic and the progress of vaccine, and the expectation of monetary and fiscal policies of major countries, the US dollar index has fluctuated upward, and the financial asset prices of major countries have generally risen. Foreign exchange reserves are denominated in US dollars. The amount of non-US dollar currencies decreases after being converted into US dollars. Combined with changes in asset prices and other factors, the scale of foreign exchange reserves decreases in that month.
Wang Chunying said that looking ahead, the epidemic situation abroad is still grim, and the global economic situation and the international financial market still face many risk factors. However, China's economic performance has been strengthened and improved, and the internal driving force has been gradually strengthened, which will help keep the scale of foreign exchange reserves basically stable.
