China’s foreign exchange reserves soar to $3.2 TRILLION

Beijing has continued to increase its foreign exchange reserves – already the world's largest – boosting them by $28.15 billion in April from a month earlier, to a total of $3.198 trillion.

The increase was due to the US dollar's decline against other major currencies held in the reserves, along with rises in global asset prices, China’s central bank said in a statement on Friday.

The Chinese yuan appreciated 1.2% against the dollar in April, while the greenback dropped 2.1% against a basket of major world currencies.

Foreign capital inflows to China also picked up in April, after the country posted record economic growth in the first three months of the year.

Data from the Institute of International Finance showed that China accounted for 95% of foreign net inflows to emerging market equities last month at $13.5 billion, though flows into Chinese debt eased.

Statistics also showed that China’s gold bullion reserves stayed unchanged from the end of March, at 62.64 million fine troy ounces. The value of China’s gold holdings rose to $110.73 billion at the end of April, from $109.18 billion at the end of March.

According to the regulator, China has posted a preliminary current account surplus of $75.1 billion in the first quarter of 2021, equivalent to 2% of GDP. Preliminary capital and financial account deficit stood at $75.1 billion in January-March.

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