China is a huge nation and probably the most influential one in the global economy well that’s up for debate as most people think the United States is the most influential. Either way, China affects global diplomacy, markets and almost everything with its policies and actions.
The forex of China is no exception to its massive scale of sectors. China’s foreign exchange reserves amounted to a whopping 3.0924 trillion U.S. dollars at the end of September, official data showed. The amount amazingly increased by 19.7 billion U.S. dollars, or 0.6 percent from the beginning of 2019, according to the State Administration of Foreign Exchange (SAFE). This increase came despite the unfavourable trade war conditions between the nation and the United States. Wang Chunying, a spokesperson for the SAFE, stated that the scale of forex reserves are affected by multiple factors including exchange rates and changes in asset prices, Factors including the global economic growth, monetary policies of major countries, the global trade situation and geopolitics led to the rise in the U.S. dollar index and the drop in bond prices of major countries.
Since the beginning of the year, the Chinese economy, despite complex global situations, has maintained the overall stability and posted stable growth with an improved economic structure, according to Wang. The scale of China’s forex reserves is generally stable, said Wang, adding that small fluctuations in the scale of forex reserves are mainly affected by valuation factors. It will be interesting to see how the forex markets fare after this announcement.