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The State Administration of Foreign Exchange released figures showing that China’s foreign exchange reserves stood at $3.4383 trillion at the end of August. This marked a gain of $19.5 billion, equivalent to a 0.57 percent rise from the end of July. The announcement on September 8 followed earlier monthly data that had shown a more modest uptick in reserves during the summer period.
According to a statement from the State Administration of Foreign Exchange, the increase stemmed from the combined effects of currency translation and shifts in asset prices. The U.S. dollar index fell 0.5 percent in August, ending the month at 99.4 and generating a positive valuation effect for non-dollar holdings. The authority added that China’s economy has remained generally stable while making solid progress, conditions that help anchor the stability of foreign exchange reserves.
Wen Bin, chief economist at China Minsheng Bank, linked the reserves growth to broader trade dynamics in remarks reported by Xinhua. “The rise in China’s foreign exchange reserves last month came as the U.S. dollar index fell 0.5 percent in August to 99.4, with the dollar’s weakness contributing to a positive valuation effect on China’s foreign exchange reserves,” Wen Bin said. He noted that exports are expected to sustain resilience, reinforcing the balance of payments, while a global manufacturing upswing tied to artificial intelligence investment continues to drive demand for Chinese goods.
The August outcome represented the second successive monthly expansion in reserves, following a smaller rise in July that brought the total to approximately $3.419 trillion. Earlier State Administration of Foreign Exchange data placed reserves at $3.4163 trillion at the end of June. The current level stays below the series high of roughly $3.99 trillion reached in 2014, according to historical compilations from the authority.
In a parallel development tracked by the People’s Bank of China, official gold reserves expanded by 650,000 ounces in August to reach 76.73 million ounces. The addition marked the 22nd consecutive monthly increase and the largest single-month gain since October 2023, central bank statistics show. Such diversification moves by the monetary authority have coincided with the steady foreign exchange position amid fluctuating global commodity prices.
Economists surveyed ahead of the release had projected a smaller increase that would have left reserves near $3.425 trillion. The actual result exceeded those forecasts, according to assessments compiled by The Wall Street Journal. China’s foreign trade maintained momentum into July with notable contributions from high-technology exports, a trend that Xinhua indicated would continue to underpin external accounts.
