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Wang Chunying, deputy director of the State Administration of Foreign Exchange, pointed out that at the end of October, China's foreign exchange reserves stood at US $3.2176 trillion, an increase of US $17 billion, or 0.53%, from the end of September. In October, the supply and demand of China's foreign exchange market remained stable, and the cross-border revenue and expenditure transactions were rational and orderly.
In the international financial market, under the influence of factors such as the progress of COVID-19 's epidemic situation and the expectations of fiscal and monetary policies of major countries, the US dollar index fell slightly, and the prices of financial assets in major countries were mixed. Foreign exchange reserves are denominated in US dollars, and the scale of foreign exchange reserves increased in that month under the combined effect of exchange rate conversion and asset price changes.
The macro researcher of Galaxy Futures told the Financial Associated Press that the double increase in foreign exchange reserves in dollar terms and SDR terms in October was achieved against the background of a slight rebound in yields on foreign treasury bonds such as the United States, although the dollar index fell slightly in October, taking into account the relatively high share of dollars and renminbi in foreign exchange receipts and payments, the increase in foreign exchange reserves was mainly due to trading factors. Recently, under the background of the relative strength of the RMB, the rise in the settlement exchange rate also has a certain positive impact on foreign reserves.
Wen Bin, chief researcher of Minsheng Bank, pointed out that the increase in foreign exchange reserves this month is mainly caused by valuation factors. Considering the impact of exchange rate conversion and asset price changes, the scale of China's foreign exchange reserves increased in October. In addition, real trade and cross-border capital flows are expected to contribute to the size of foreign exchange reserves.
The scale of China's foreign exchange reserves will continue to remain stable.
Wang Chunying also pointed out that the current COVID-19 epidemic continues to repeat, the global economic recovery is facing more unstable factors, and the international financial market is volatile. However, China's economy continues to recover, with strong resilience and great potential, which will provide support for the overall stability of foreign exchange reserves.
Wen Bin believes that in the next stage, the scale of China's foreign exchange reserves will continue to remain stable. China's economy continues to recover, the main economic indicators are located in a reasonable range, economic fundamentals are improving as a whole, and the scale of foreign reserves has a stable foundation. Driven by booming external demand, China's exports are expected to maintain a good situation, international investors are optimistic about the prospect of RMB assets, and securities investment maintains a net inflow, laying the foundation for the basic balance of foreign exchange supply and demand and the balance of payments.
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