According to the latest data released by the People’s Bank of China and the State Administration of Foreign Exchange, by the end of November, China’s foreign exchange reserves were $3178.5 billion, up 50.5 billion US dollars, or 1.61%, from the end of October.
Many media have focused on China’s latest foreign exchange reserve data, praising China’s trade boom and the performance of the RMB.
The sustained economic recovery helps China’s foreign reserves grow.
Reuters reported on December 7 that China’s foreign exchange reserves grew faster than expected in November, reaching their highest level in more than four years due to China’s sustained economic recovery.
China’s foreign exchange reserves increased by $50.51 billion to $31785 trillion in late November, the highest level since August 2016, higher than Reuters survey analysts expected, citing data released by the People’s Bank of China on Monday.
The report also noted that in November, China’s exports reached their highest growth rate in nearly three years, believing that China is leading the global economy to recover from the COVID-19 pandemic.
China’s foreign exchange market will continue to be stable
Bloomberg’s website quoted China’s State Administration of Foreign Exchange on December 7 as saying that China’s foreign exchange market will be basically stable in the future. Due to the combination of exchange rate conversion and asset price changes, the size of China’s foreign exchange reserves rose in November.
The report said that the RMB has appreciated by more than 6% against the US dollar so far this year, making it one of the best performing currencies in Asia.
Trade boom and the performance of the RMB ensure that China’s foreign exchange reserves rise.
Russia Today’s website reports that China’s foreign exchange reserves have increased as China’s economy recovers rapidly from the COVID-19 epidemic. In recent months, China’s foreign trade has boomed, and exports soared to a nearly three-year high in November.
The report believes that the strong exports are accompanied by the continued appreciation of the RMB against the US dollar; at the same time, the US dollar continues to fall against the world’s major currencies.
Large multinational enterprises are optimistic about China’s economic prospects
According to the report of the U.S. Consumer News and Business Channel (CNBC), a series of economic data recently released by China show the continuous recovery of China’s economy. China’s GDP will grow throughout the year and foreign exchange reserves will remain stable.
According to the fourth quarter survey released by CNBC’s Global Chief Financial Officers Committee, chief financial officers of large multinational companies have a more optimistic view of China’s economic outlook than the U.S. economic outlook.
They raised China’s economic outlook and believed that China was gradually getting rid of the haze of the COVID-19 epidemic and achieving economic growth. Respondents to the survey also raised China’s economic outlook from “stability” in the third quarter to “moderate improvement”.
Some economists predict that due to China’s sustained and relatively rapid economic recovery, the RMB will become the “best choice among Asian currencies” in the first half of next year.