Q: The State Administration of Foreign Exchange has just released the latest data on foreign exchange reserves. Could you explain why those changes occurred in November 2019? What would be the future trends of foreign exchange reserves?

A: By the end of November 2019, China's foreign exchange reserves had hit USD 3.0956 trillion, up by USD 22.9 billion or 0.7% from the beginning of the year

China's foreign exchange market was in an equilibrium in November, with overall market expectations staying stable. Along with global economic growth, expectations of monetary policies, and trade situations, the US Dollar Index rose slightly and bond prices fell in major countries. The valuation factors like exchange rate conversion and asset price changes were the major contributors to the changes in foreign exchange reserves for the month.

In the year to date, China's economy has continued its growth momentum of maintaining overall stability while achieving progress, with major indicators falling in the reasonable ranges, and therefore, China has effectively coped with increasing risks and challenges from global markets. Thanks to this, China's balance of payments has remained in an equilibrium and its foreign exchange reserves have stayed stable.

Although the global economic growth is slowing down and there are many destabilizing factors and uncertainties externally, China's economy features ample resilience, enormous potential and large room for strengthening, so our economic fundamentals will remain sound over the long term. We will also adopt the new development concepts to drive the high quality economic growth and advance the higher-level opening up, which will be favorable for stable operations of China's foreign exchange market and underpin the overall stability of foreign exchange reserves.