SAFE Official Answers Press Questions on Foreign Exchange Reserves for October 2017
Q：The latest data disseminated by the People's Bank of China on foreign exchange reserves show that China's foreign exchange reserves as at the end of October 2017 grew by a slight USD 700 million from the end of September. Could you brief us on the causes behind such a change? What will be the future trends on foreign exchange reserves?
A: As at the end of October, China's foreign exchange reserves hit USD 3.1092 trillion, USD 700 million more than that of September.
In October, China's cross-border capital flows and the trading behaviors of domestic and overseas market participants were further balanced, indicating a basic equilibrium in the supply and demand of foreign exchange. In global financial markets, non-USD currencies depreciated against the USD, and asset prices rose. Under the combined impact of various factors, China's foreign exchange reserves stayed stable.
China's economic performance has remained steady since the beginning of this year. With structure optimized, new dynamics' growth picking up, and quality and benefits remarkably enhanced, the economy has continued its stable growth while maintaining a good momentum, thereby boosting the balance of China's cross-border capital flows. The balance of payments has found a basic equilibrium. The foreign exchange reserves have reached a stable level after recovery.
Looking ahead, along with the success of the 19th CPC National Congress, the market confidence in China' long-term economic and social development, domestic or overseas, will be strengthened further, and the foundation for the equilibrium and good order of cross-border capital flows and the balance of payments will be solidified, which will be favorable for foreign exchange reserves to stay stable.