According to China’s foreign exchange reserves data released on Saturday by the Chinese central bank, the People’s Bank of China (PBOC), the country’s foreign exchange reserves rose unexpectedly rose by US$3.5 billion in August vs. the previous month to US$3.1072 trillion.
Meanwhile, its gold reserves were ramped up to 62.45 million fine troy ounces at the end of August, up 4.85% from 59.56 million ounces at the end of last year.
The value of its gold reserves rose to US$95.45 billion at the end of August from US$87.876 billion at the end of July
The surge in the forex reserves comes despite a sharp drop in the Chinese currency last month amid escalating US-China trade row.
“In August, the yuan fell by about 3.8 per cent against the dollar – its sharpest monthly drop since China unified official and market exchange rates in 1994. It is currently trading at 11½ year lows”, South China Morning Post (SCMP) cites.
On the data release, China’s foreign exchange regulator – the State Administration of Foreign Exchange (SAFE), noted the following:
The increase in August was due to the country maintaining a stable balance of international payments and generally stable economic growth.
Bond prices in major countries also rose.
The Aussie dollar trades modestly flat so far this Monday, with AUD/USD up and down near 0.6850 region amid dismal Chinese trade numbers and solid Australian lending data.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0500 as US Dollar wilts ahead of data
EUR/USD holds its ground and trades in positive territory above 1.0500 on Wednesday. Traders cash in on the US Dollar long positions ahead of a series of top-tier US data, lifting the pair. The USD/JPY sell-off also adds to the US Dollar downside.
GBP/USD holds gains near 1.2600, US PCE data eyed
GBP/USD extends the bullish momentum to trade near 1.2600 in the second half of the day on Wednesday. The pair benefits from a sustained US Dollar weakness but the risk-off sentiment limits the upside as traders turn cautious ahead of top-tier US data releases.
Gold rises toward $2,650 as traders “buy the fact” following news of Lebanon ceasefire
Gold (XAU/USD) recovers into the $2,650s on Wednesday as traders “buy the fact” of the ceasefire deal brokered between Israel and Hezbollah after “the rumor” led to heavy selling on Monday. Market focus shifts to US data releases.
US core PCE inflation set to hold steady, raising doubts on further Federal Reserve rate cut
The United States Bureau of Economic Analysis (BEA) is set to release the Personal Consumption Expenditures (PCE) Price Index data for October on Wednesday at 15:00 GMT.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.