China’s Forex Reserves Shrank by $22 Billion in September

China’s foreign exchange reserves shrank to USD 3.1426 trillion, a dip of USD 22 billion, last month compared with August due to a host of factors including the COVID-19 pandemic abroad, the official media here reported on Wednesday. China’s foreign exchange reserves edged down in September, ending a five-month rising streak since April, though the country’s foreign exchange regulator said that supply and demand dynamics and cross-border capital flow remain stable, state-run Global Times reported.

The decrease, at USD 22 billion or 0.7 per cent month over month, was due to a rise in the US dollar index and exchange rates, changes in asset prices, as a result of a number of factors including the resurgence of the COVID-19 pandemic abroad and monetary and fiscal policies adopted by the world’s major economies, the State Administration of Foreign Exchange (SAFE) said in a statement.