May 08, 2024 (MENAFN via COMTEX) --
(MENAFN) China's State Administration of Foreign Exchange reported on Tuesday that the country's foreign exchange reserves saw a decline to 3.2 trillion U.S. dollars by the end of April, marking a notable decrease of 1.38 percent from the previous month's figures. This dip was attributed to a combination of factors, primarily currency translation and fluctuations in asset prices, according to the country's foreign exchange regulator.
Explaining the decline, the regulator pointed to the strengthening of the U.S. Dollar index and the overall downturn in global financial asset prices observed throughout the preceding month. These trends were influenced by various factors including expectations surrounding the monetary policies of major economies and the release of macroeconomic data, both domestically and internationally.
Despite the decrease in foreign exchange reserves, the regulator underscored the fundamental strength of China's economy. With a robust foundation, considerable resilience, and immense growth potential, China's economic landscape is viewed as conducive to maintaining a stable scale of foreign exchange reserves over the long term. This resilience is particularly noteworthy in the face of global economic uncertainties and fluctuations in financial markets. As such, while the recent decline in foreign exchange reserves may reflect short-term fluctuations, the regulator remains optimistic about the overall trajectory of China's economy and its ability to navigate through various challenges on the global stage.
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