Q: The latest data on foreign exchange reserves disseminated by the People's Bank of China (PBC) show that China's foreign exchange reserves as at the end of December 2017 went up by USD 20.7 billion month on month. Could you brief us on the causes of such a change? What will be the future trends?
A: As at the end of December 2017, China's foreign exchange reserves hit USD 3.1399 trillion, up by USD 20.7 billion or 0.66% month on month, marking the 11th month of consecutive growth.
In December, China's cross-border capital flows and trading by domestic and foreign market participants stayed stable and balanced. Globally, the financial markets fluctuated slightly. The foreign exchange rates of major non-USD currencies and asset prices rose, driving China's foreign exchange reserves to go up.
Through out the year, China's foreign exchange reserves recovered stably after a drop to USD 2.9982 trillion in January, with the figure for the yearend climbing by USD 129.4 billion or 4.3% from that of the beginning of the year. China's macroeconomic performance remained stable in the year with a strong momentum for growth, boosting cross-border capital flows to be more stable and balanced. The equilibrium of the balance of payments provided a guarantee for the continuous and steady recovery of foreign exchange reserves.
2018 is the first year to implement the spirit of the 19th CPC National Congress, key to building a moderately prosperous society in all respects and implementing the 13th Five-year Plan. Under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China will adhere to the general work guideline of making progress while maintaining stability, the new development philosophy and the requirement for high-quality development, to enhance the stability and resilience of economic performamce and ensure the development trend of mainitaing stability with a strong moement for grwth. As external demand rises, finanical marketa are further liberalized and market expectations are improved alongside the continuous global econonic recovery, China's balance of payments and foreign exchange reserves will remain stable and balanced going forward.
