China’s State Administration of Foreign Exchange announced on April 7 that China’s foreign exchange reserves stood at 3.188 trillion dollars at the end of March, a one-year low, down 25.8 billion dollars, or 0.8%, from the end of February.
This is the third consecutive month of decline in China’s foreign exchange reserves, and the decline was significantly larger than the previous value.
Reuters reported that the Chinese yuan decreased 0.5% against the U.S dollar in March.
Wang Chunying, deputy director of China’s State Administration of Foreign Exchange and spokesman, told Xinhua News Agency that the supply and demand in the foreign exchange market were basically balanced but many factors in the international financial market created a negative impact, including the monetary policies of major countries, the geopolitical situation as well as the COVID-19 epidemic.
Wang added that the U.S. dollar index rose, and bond prices of major countries generally fell as a result.
Wang also noted that the decrease in China’s foreign exchange reserves in March was because of factors such as exchange rate conversion and changes in asset prices.
According to The Wall Street Journal, Chinese stocks also fell significantly in March, with significant outflows of capital and continued losses in Hong Kong stocks. Some investors were worried that international capital was pulling out of China.