Chinese Foreign Exchange Reserves fall to almost 4-years-low

Chinese Foreign Exchange Reserves fall to almost 4-years-low

Chinese Foreign Exchange Reserves fall to almost 4-years-low

Chinese foreign exchange reserves have decreased for the second month in a row to the lowest since October 2018 when the price of global financial assets fell, according to the government.

The data released by the People’s Bank of China showed that foreign exchange reserves decreased to $ 3,0549 trillion at the end of August, down $ 49.2 billion from a month ago.

That’s a little below the estimated average of $ 3.065 trillion in the Bloomberg survey of economists.

The decline was due to the fall in asset prices due to the dollar strengthened, Wang Chunying, a spokesman for Foreign State Administration, said in a statement.

She said that the new steps that were launched recently by China to increase economic growth will help maintain reserves at a stable level.

The Chinese trade surplus, the main source of foreign exchange, dropped to $ 79.4 billion last month, $ 21.9 billion less than July.

This decline was mainly geared by weaker export growth, which rose at the latest speed since April when consumers around the world reduce expenditure in the midst of rising inflation and shift far from goods related to Pandemic to the services.

A smaller trade surplus in the future will weigh on the currency, which fell this year and is about to break 7 to the dollar while the capital has left the country to continue a reinforcing greenback.

The PBOC has recently taken several steps to stop the depreciation of the Yuan, and on Wednesday the bank established its reference rate for the currency with the strongest bias registered, marking the 11th consecutive day of stronger fixations than expected.

Meanwhile, Chinese gold reserves fell to $ 107.49 billion at the end of last month, against 109.84 billion dollars in July.

Chinese Foreign Exchange Reserves fall to almost 4-years-low