The onshore and offshore RMB exchange rates have risen, with foreign exchange reserves increasing by 16.5 billion US dollars in June
Foreign exchange reserves increased in June.
The latest data released by the State Administration of Foreign Exchange on July 7th shows that as of the end of June 2023, China's foreign exchange reserves amounted to 3192.998 billion US dollars, an increase of 16.5 billion US dollars or 0.52% compared to the end of May.
The State Administration of Foreign Exchange stated that in June 2023, the US dollar index fell and global financial asset prices fluctuated due to factors such as monetary policies and expectations of major economies, and global macroeconomic data. The combined effect of exchange rate conversion and changes in asset prices has led to an increase in the size of foreign exchange reserves for the month.
Zhao Qingming, Vice President of China Foreign Exchange Investment Research Institute, said in an interview with Pengpai News: "The increase in foreign exchange reserves in June slightly exceeded market expectations. In terms of exchange rate conversion, the US dollar index fell in June, while exchange rates such as the euro, yen, and pound rose. Non US currencies in foreign exchange reserves converted to US dollars would result in a surplus on the books. The contribution of asset prices to foreign exchange reserves may be negative, and bond prices in European and American countries may decline in June, causing a shrinkage of foreign exchange reserves on the books. At the same time, some investment products will mature and generate profits every month. In addition, the supply and demand of China's foreign exchange market in June were balanced, and there may even be a slight surplus, which would help to the growth of foreign exchange reserves. This also indicates that the exchange rate of the Chinese yuan is..." The depreciation space is limited
After the release of foreign exchange reserve data, the RMB/USD exchange rate rose by 100 points in onshore and offshore markets, breaking through the 7.24 and 7.25 levels, respectively.
Looking ahead to the future, the State Administration of Foreign Exchange emphasizes that China's economy is clearly recovering and steadily advancing towards high-quality development, which is conducive to maintaining basic stability in the scale of foreign exchange reserves.