Q: The State Administration of Foreign Exchange (SAFE) has just released the latest data on China's foreign exchange reserves. Could you explain why China's foreign exchange reserves changed in June 2020? What will be the future trends?
A: By the end of June 2020, China posted US$ 3.1123 trillion in foreign exchange reserves, up by US$ 10.6 billion or 0.3% month on month.
In June, China's foreign exchange market witnessed balanced  supply and demand. Due to the COVID-19 pandemic, and the monetary and fiscal stimulus policies in major countries, the US Dollar Index dropped slightly on the international financial market and asset prices in major countries rose. Under the combined impact of exchange rate conversion and asset price changes, China's foreign exchange reserves increased in the month.
Currently, as the pandemic still rages abroad, and the world economic conditions are complicated and challenging, global financial markets are becoming increasingly volatile. Yet China's efforts to coordinate epidemic control and resumption of work and production have yielded positive results, and economic indicators have achieved marginal improvements. As a result, the economic conditions are changing for the better. Looking ahead, China will stay committed to deepening reforms and expanding opening-up. Our economic growth will remain resilient and our economic fundamentals will remain sound over the long term, which will be favorable for sustaining overall stability in foreign exchange reserves.