China's Central Bank Reduces Foreign Exchange Reserves By $63.5 Billion In December 2024
Date
1/8/2025 12:08:52 AM
(MENAFN- AzerNews)
By Alimat Aliyeva
Last December, the People's bank of China (PBOC), the country's
central bank, reduced its foreign exchange reserves by 1.94%, or
$63.5 billion, compared to November, Azernews
reports.
A statement posted on the agency's website specified that by the
end of last month, the nation's foreign currency reserves totaled
$3.2024 trillion. The PBOC attributed the changes to a combination
of factors, including an increase in the dollar index, a decrease
in global prices for financial assets, macroeconomic conditions,
and expectations regarding the monetary policies of major central
banks.
In addition, the reduction in China's reserves was influenced by
exchange rate fluctuations and changes in asset prices. "Overall,
China's economy remains stable and resilient, and the process of
high-quality development is progressing confidently. This helps
maintain foreign exchange reserves at a stable level," the
statement from the state administration read.
According to official data, in 2022, China's central bank
reduced its foreign exchange reserves by 2.9%, bringing them down
to $3.1277 trillion. However, in 2023, the financial regulator
increased reserves by approximately 1.7%, reaching $3.238
trillion.
The fluctuations in China's foreign exchange reserves highlight
the complexities of managing a large economy amidst global economic
uncertainty, including challenges like currency movements and
international trade dynamics.
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