China’s FX reserves dip in Dec ’24

China’s foreign exchange reserves fell to 3.2024 trillion dollars at the end of December 2024, marking a decline of 63.5 billion dollars, or 1.94 per cent, from the previous month, official data revealed on Tuesday.

The State Administration of Foreign Exchange attributed the drop to a stronger US dollar index and a decline in global financial asset prices, influenced by monetary policy expectations and macroeconomic data from major economies.

The administration noted that currency translation and asset price fluctuations contributed to the contraction in reserves during December.

Despite the decline, China’s economy remained stable, with steady growth and progress in high-quality development, ensuring the overall stability of the country’s foreign exchange reserves, according to the statement.

Attribution: Xinhua

Subediting: M. S. Salama