China’s foreign exchange reserves fell by US$3.8 billion, or 0.1%, to US$ 3.094 trillion at the end of April, compared with the level seen at the end of March, according to the State Administration of Foreign Exchange.
SAFE spokesperson Wang Chunying attributed the fall to exchange rate fluctuations and changes in asset prices. The greenback appreciated against other major currencies in April, with the dollar index up 0.2%, she said.
A decrease in bond prices also led to the fall in the country’s forex reserves, said Zhao Qingming, chief economist of the derivatives institute of the China Financial Futures Exchange.
With the backdrop of a slower global economy and trade growth, China has kept economic growth at a reasonable level, the official statement said. The overall forex reserve is stable, it insisted.
Looking ahead, despite uncertainties in the world economy and global financial markets, China will continue to maintain the momentum of economic growth in the long term and deepen reforms and opening-up, Wang promised.
Cross-border capital flows will remain balanced, which will help ensure stable forex reserves, she added.