China's Forex Reserves Dipped Last Month, Weighed by Rate, Asset Price Changes
Xu Wei
/SOURCE : Yicai
China's Forex Reserves Dipped Last Month, Weighed by Rate, Asset Price Changes

(Yicai Global) Nov. 8 -- China's holdings of foreign exchange denominated in US dollars and special drawing rights dipped month-on-month in October, according to data the central bank released yesterday.

Dollar-based reserves fell by USD33.9 billion, or 1.1 percent, to USD3.1 trillion in October from the previous month, figures from the People's Bank of China show. Reserves denoted in special drawing rights -- a currency unit of the International Monetary Fund -- fell by SDR3.5 billion to SDR2.21 trillion.

The minor declines were due to changing asset prices in major countries and exchange rate conversions, Wang Chunying, a spokeswoman for the State Administration of Foreign Exchange, said at a press conference yesterday.

Global financial markets fluctuated last month under the impact of monetary policies in major countries and the global trade and geopolitical situations.

Despite the intricate international situation and growing uncertainty in the global economic and financial markets, the Chinese economy has remained stable and operated within a reasonable range so far this year, Wang added.

A small deficit of about USD3 billion in banks' forex settlement and sales emerged last month, over 80 percent less than that in September, preliminary statistics show. Net foreign exchange purchases by individuals fell steadily, compared with the month before, she noted.

China's forex reserves are expected to remain stable amid market fluctuations since stable economic fundamentals impart great resilience and flexibility and the country's economic transformation and upgrading and further opening-up will facilitate cross-border capital flows, Wang added.

Editor: Ben Armour

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Keywords: FOREX RESERVES , Forex