China’s foreign exchange reserves, which are the largest in the world, rose for the first time this year, state data showed.
China’s reserves rose by $80.6 billion last month to $3.13 trillion in May.
The growth came as the US dollar hit a 20-year high last month.
China’s foreign exchange reserves – the largest in the world – rose 0.26% in May from the previous month, marking the first increase this year.
Reserves rose by $80.6 billion to $3.13 trillion last month, the State Administration of Foreign Exchange (SAFE) reported on Tuesday.
“The current external environment is still complex and severe, the global economy is facing increasing risks and challenges, and the international financial market is still subject to great uncertainty,” SAFE said.
The growth, according to SAFE, stems mainly from the exchange of other major currencies against the US dollar, which hit a 20-year high in May, as well as fluctuations in global asset prices.
“However, China has effectively coordinated pandemic prevention and control with economic and social development, and the long-term economic fundamentals have not changed, which will support the overall stability of the foreign exchange reserve scale. “, SAFE added.
Last week, a Chinese official said the yuan would not face as much volatility as at the start of the year and could even get stronger against the dollar move forward as the US Federal Reserve struggles to balance growth and inflation.
“The yuan’s exchange rates are basically stable with fluctuations in both directions,” Pan Gongsheng said Thursday, according to the South China Morning Post. “Many market institutions believe it will become more difficult for the Fed to stabilize growth while controlling inflation.”
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