Q: The State Administration of Foreign Exchange (SAFE) has just released the latest foreign exchange reserve data. Could you explain why foreign exchange reserves changed in May 2020? What will be the future trends?
A: China posted US$ 3.1017 trillion in foreign exchange reserves as at the end of May 2020, up by US$ 10.2 billion or 0.3% from the end of April.
In May, China's foreign exchange market performed stably, featuring balanced supply and demand. In global financial markets, the US Dollar Index dropped slightly, and asset prices of major countries climbed. Due to a combination of factors such as exchange rate differences and changes in asset prices, China's foreign exchange reserves increased slightly in the month.
Currently the pandemic and the world economic conditions remain complex and challenging, the geopolitical risks grow and global financial markets are becoming increasingly volatile. As positive impacts are achieved in China's epidemic response efforts and its economic and social development, China's economic performance is gradually back to normalcy. Looking ahead, China's economy, still featuring high potential, strong resilience, great leeway and various policy instruments, will continue to sustain general stability of foreign exchange reserves.