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China's forex reserves fall in February

Xinhua | Updated: 2022-03-07 16:54
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A teller counts and arranges dollar notes at a bank in Huaibei, Anhui province. [Photo/Sipa]

BEIJING - China's foreign exchange reserves fell in February as global financial asset prices dropped amid a strengthening US dollar, data from the State Administration of Foreign Exchange showed Monday.

The country's forex holdings stood at more than $3.21 trillion at the end of February, down $7.8 billion, or 0.24 percent, from the end of January.

Commenting on the data, the administration's deputy head Wang Chunying said the flow of cross-border capital was stable and orderly last month, and supply and demand in the domestic forex market were "basically balanced."

Wang attributed the decline to the rise of the dollar index and the changes in global financial asset prices, which were driven by factors including geopolitical situations and the expectations of major countries' monetary policies.

Despite the complicated and challenging external circumstances, China's efforts to coordinate COVID-19 prevention and control work with economic and social development, as well as its efforts to stabilize the economy, will help maintain the stability of its forex reserves, Wang said.

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