According to the statistics of the State Administration of Foreign Exchange (SAFE), by the end of August 2023, China’s foreign exchange reserves registered USD 3160.1 billion, down by USD 44.2 billion, or 1.38%, from the end of July.

In August 2023, driven by factors such as global macroeconomic data and monetary policy expectations of major economies, the US dollar index surged, leading to a general decline in global financial asset prices. China’s foreign exchange reserves declined this month due to the combined effects of currency translation and asset price changes. Despite that, China continues to maintain a positive trend of recovery, characterized by strong resilience, great potential, and vitality in its economy. Its sound long-term economic fundamentals remain unchanged, which will support the overall stability of foreign exchange reserves.