Post by : Badri Ariffin

China’s foreign exchange reserves climbed slightly in October, reaching US$3.343 trillion, marking an increase of US$4.7 billion, or 0.14%, from September. The modest rise comes amid a backdrop of fluctuating global markets and a strengthening US dollar.

The State Administration of Foreign Exchange (SAFE) attributed the gain to exchange rate conversions and shifts in global asset prices, reflecting broader macroeconomic developments. Last month, the US dollar index experienced an upward trend, and major financial assets saw general gains as investors reacted to monetary policies, economic forecasts, and international market sentiment.

Despite the modest growth, China remains the world’s largest holder of foreign reserves, a critical buffer for its currency stability and international trade. Analysts note that even small fluctuations in reserves can signal market confidence and resilience amid global uncertainties.

Economists suggest that this increase, though moderate, highlights China’s careful management of foreign assets, balancing the pressures of a stronger dollar with domestic financial stability. With global markets in flux, such reserves play a pivotal role in cushioning the economy against external shocks.

#Global News #Business News #Economic