China's forex reserves drop 1.11% in September, gold holdings rise for 23rd month
China's foreign exchange reserves fell to US$3.4 trillion at the end of September, a 1.11 per cent monthly decline, while gold reserves increased for the 23rd consecutive month. The central bank attributed the drop to a stronger US dollar and falling global asset prices.
China's foreign exchange reserves stood at US$3.4 trillion at the end of September, the lowest in six months, according to data released by the People's Bank of China. The figure represented a month-on-month decrease of US$38.1 billion, or 1.11 per cent.
Meanwhile, the country's gold reserves rose to 77.47 million fine troy ounces in September, an increase of 740,000 ounces from the previous month. This marked the 23rd consecutive month of gold purchases. The total value of the gold holdings was US$323.5 billion, down US$26.6 billion from August.
The China Foreign Exchange Administration said the decline in the scale of foreign exchange reserves was mainly due to a combination of factors including a rise in the US dollar index and an overall drop in global major financial asset prices last month.
The administration noted that China's economic performance remained generally stable and that the country had achieved new progress in high-quality development, which it said was conducive to keeping the scale of foreign exchange reserves broadly stable.