China Foreign Reserves at Highest Since 2016 as Trade Booms
(Bloomberg) -- China’s foreign exchange reserves rose by more than $50 billion in November to the highest since August 2016, likely boosted by the weaker dollar and a trade surplus at record highs.
Reserves gained for the first time in three months, reaching $3.1785 trillion at the end of November, the People’s Bank of China said Monday. The value of gold assets declined to $110.4 billion.
China’s foreign exchange market is expected to be basically stable, the State Administration of Foreign Exchange said in a separate statement. The reserves rose mainly due to changing exchange rates and asset prices, SAFE spokesman Wang Chunying said in a statement, noting that the dollar index had fallen and non-dollar currencies rose in general.
The yuan has already appreciated more than 6% against the dollar this year and is one of the best performers in Asia.
©2020 Bloomberg L.P.