State Administration of Foreign Exchange photo: VCG

As of the end of October 2021, China's foreign exchange reserve stood at $3.2176 trillion, a month-on-month increase of 0.53 percent, according to data released by China's State Administration of Foreign Exchange on Sunday.

Wang Chunying, a spokesperson from the administration said that, in October, supply and demand of China's foreign exchange market remained stable with orderly and balanced cross-border transactions.

Due to recent flare-ups of COVID-19 and readjustments of fiscal and monetary policies in some countries, the US dollar index has dropped slightly, leading to a rise of China's foreign exchange reserve, Wang added.

With the overall recovery of the global economy from the pandemic, major economies have maintained a relative economic boom, and China's foreign demand became stronger with the faster growth of export, which has supported the country's foreign exchange reserve, analyst said.

Wang noted that, despite international financial market volatility, China's economy continues to recover from the pandemic, demonstrating its great resilience and potential, which will bolster foreign exchange reserve of China, and help maintain its overall stability.

Global Times