China’s Forex Reserves Edge Up to $3.4188 Trillion in July Amid 19.2% Surge in Foreign Trade
Official data released on Friday showed that China's total foreign exchange reserves reached $3.4188 trillion at the end of July, marking an increase of $2.5 billion, or 0.07%, compared to the end of June.
Drivers Behind the Increase
The State Administration of Foreign Exchange (SAFE) stated that the slight uptick in reserves was primarily driven by the combined effects of currency exchange rate fluctuations and changes in asset prices.
The administration explained that the U.S. dollar index declined, influenced by global macroeconomic conditions and the monetary policies of major economies, while global financial asset prices experienced mixed movements throughout July.
SAFE further noted that the Chinese economy has demonstrated robust resilience and vitality. With new growth drivers gaining momentum and the economic structure continuously improving, these underlying fundamentals help maintain the overall stability of the nation's foreign exchange reserves.
Robust Growth in Foreign Trade
In related economic developments, official data released by the General Administration of Customs on Friday revealed that China's yuan-denominated foreign trade grew by 19.2% year-on-year in July.
The data showed that the total value of goods imports and exports reached 4.66 trillion yuan (approximately $686.26 billion) last month, maintaining a level above the 4-trillion-yuan mark for the fifth consecutive month.
A breakdown of the trade figures highlighted that exports surged by 17.8% compared to the same period last year, while imports jumped by a significant 21.2%.
For the first seven months of the current year, China's total foreign trade in goods amounted to 30.13 trillion yuan, registering a solid 17.3% increase on a year-on-year basis.