China forex reserves snap 5-month rising streak

2019-05-07
Xinhua

BEIJING — China’s foreign exchange reserves snapped a five-month rising streak to fall in April, official data showed on May 7.

Forex reserves fell to $3.09 trillion at the end of April, compared with $3.10 trillion at the end of March, according to the State Administration of Foreign Exchange (SAFE).

SAFE spokesperson Wang Chunying attributed the fall to exchange rate fluctuations and changes in asset prices.

The US dollar appreciated against other major currencies in April, with the dollar index up 0.2 percent.

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.

“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 said.

Cross-border capital flows will remain balanced, which will help ensure stable forex reserves, she added.