Forex reserves hold steady in January

CHINA’S foreign exchange reserves rose to US$3.0879 trillion at the end of January, data released yesterday showed.

That was an increase of US$15.2 billion, or 0.5 percent, from the level at December, according to data of the State Administration of Foreign Exchange.

It is believed that factors including stronger non-dollar denominated currencies and price hikes of financial assets contributed to the rising reserves.

“Despite the unstable and uncertain international environment, China’s forex reserves largely remained stable,” said Wang Chunying, SAFE spokesperson and chief economist, citing China’s stable economic development and the balance of international payments.

China’s forex reserves are expected to remain stable amid fluctuations, given that the Chinese economy will continue its long-term, healthy development trend.

And this comes along with the country’s continued openingup and balanced cross-border capital flows made possible as the result of the improved forex market mechanism, which will fend off external impact and market volatility, Wang said.

(Xinhua)