China’s foreign exchange reserves have increased for two consecutive months.
html On December 7, the latest data released by the State Administration of Foreign Exchange showed that as of the end of November 2022, the scale of my country's foreign exchange reserves was 3.1175 billion US dollars, an increase of 65.1 billion US dollars from the end of October, an increase of 2.13%. The Foreign Exchange Administration stated that in November 2022, affected by factors such as global macroeconomic data and monetary policy expectations of major economies, the U.S. dollar index fell and global financial asset prices rose. The combined effects of factors such as exchange rate conversion and changes in asset prices resulted in an increase in the scale of foreign exchange reserves that month."Foreign exchange reserves increased by US$65.1 billion in November, mainly contributed by exchange rate conversion. In November, the U.S. dollar index fell sharply by more than 5%, and the exchange rates of Japanese yen, euro, pound, etc. against the U.S. dollar increased by more than 5%. These non-U.S. assets in our foreign exchange reserves will appear in the books when converted into U.S. dollars. The value added is estimated to be no less than 50 billion US dollars. In addition, bond prices in developed countries such as Europe and the United States also rose to varying degrees in November, which is also a positive contribution to foreign exchange reserves," Zhao Qingming, deputy director of the China Foreign Exchange Investment Research Institute, said in an interview with The Paper .
"In November 2022, the U.S. dollar index fell and international financial asset prices generally rose. Due to the combined effects of factors such as exchange rate conversion and asset price changes, the scale of my country's foreign exchange reserves increased. In terms of currency, the U.S. dollar exchange rate index (DXY) fell 5% to 106; among non-U.S. dollar currencies, the euro rose 5.3%, the pound rose 5.1%, and the yen rose 7.7%. In terms of assets, the U.S. dollar-denominated hedged global bond index (Barclays Global Aggregate) Total Return Index USD Hedged) rose 2.3%; the S&P 500 stock index rose 5.4%, the Euro Stoxx 50 index rose 9.6%, and the Nikkei 225 index rose 1.4%. At the same time, my country's international balance of payments situation is generally stable, and the RMB exchange rate has appreciated by nearly 3% against the U.S. dollar, supporting the stability of foreign exchange reserves. "Wen Bin, chief economist of China Minsheng Bank, pointed out.
Throughout November, the spot exchange rate of RMB against the U.S. dollar
has been rising from around 7.30, with a cumulative appreciation of 1,566 basis points in a single month, an increase of more than 2.1%. The U.S. dollar index fell 5% in November. The central parity rate of the RMB against the U.S. dollar fell by 1 basis point from 7.1768 at the end of October to 7.1769 on November 30.When looking forward to the follow-up trend of foreign exchange reserves, the State Administration of Foreign Exchange stated that my country continues to promote a package of economic stabilization policies and subsequent measures to be fully implemented and effective, and the economy is showing a stable and upward trend, which is conducive to maintaining overall stability in the scale of foreign exchange reserves.
"Taking into account changes in the exchange rate in the international foreign exchange market and the price trends in the bond markets of developed countries, my country's foreign exchange reserves may still show a steady recovery trend in the future." Zhao Qingming said.
Wen Bin said that the current risk of world economic recession is rising, the volatility of the international financial market is increasing, and various unstable and uncertain factors are increasing. With the effective implementation of various policies to stabilize growth and the continuous optimization of epidemic prevention and control measures, my country's economy will continue to show a stabilizing trend, which will help maintain overall stability in the scale of foreign exchange reserves.
