Source: Dongfang fortune.com
Wang Chunying, spokesman and chief economist of the State Administration of foreign exchange, answers the reporter's questions on the changes in the scale of foreign exchange reserves in January 2020
Q: the State Administration of foreign exchange has just released the latest data on the scale of foreign exchange reserves. What is the reason for the change of foreign exchange reserve scale in January 2020? What is the trend of foreign exchange reserve scale in the future?
A: by the end of January 2020, China's foreign exchange reserves had reached US $3115.5 billion, an increase of US $7.6 billion or 0.2% over the end of December 2019.
In January 2020, China's cross-border capital flow is generally stable, and the supply and demand of foreign exchange market is basically balanced, providing support for the stability of foreign exchange reserve scale. At the same time, influenced by the signing of the first phase of economic and trade agreement between China and the United States, the formal brexit of the United Kingdom and the outbreak of pneumonia caused by the new coronavirus, the dollar index rose slightly in the international financial market, and the bond prices of major countries rose. The scale of foreign exchange reserves has increased due to the combination of exchange rate conversion and asset price changes.
Looking forward, the external environment is still complex and severe, and the international financial market still faces many uncertainties. The impact of the new coronavirus infection of pneumonia on China's economy is temporary, and China is confident, capable and confident to win the prevention and control of the epidemic. The fundamentals of China's long-term sound and high-quality economic growth will not change, and the increasingly perfect operation mechanism of the foreign exchange market is conducive to the smooth operation of the market, which will continue to provide a solid foundation for the overall stability of the scale of foreign exchange reserves.
(source: State Administration of foreign exchange)