(Yicai Global) Jan. 7 -- China’s foreign exchange reserves totaled USD3.25 trillion as of the end of last month, up USD27.8 billion or 0.86 percent from the end of November and rising for the third consecutive month, per data from the State Administration of Foreign Exchange today.

The foreign exchange market was running steadily and cross-border capital flows were vibrant and well-organized last month, said Wang Chunying, spokesperson for SAFE. The US dollar index dropped and the prices of major countries’ financial assets were mixed because of the Covid-19 pandemic and varying monetary policy expectations, she said. Wang also noted that the foreign exchange reserves are denominated in US dollars, so the US dollar value of non-dollar currencies jumped, which, combined with changes in asset prices, caused the country’s foreign exchange reserves to climb last month.

The global pandemic and economic situation are tough and complicated, creating unstable and uncertain factors in the international financial market, but China’s economy is resilient, and sound fundamentals have not changed as the nation has done a good job in terms of pandemic control and economic and social development, she added.

Editor: Tom Litting