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China's forex reserves expand in May

Xinhua | Updated: 2020-06-07 17:12
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A bank staff counts RMB and US dollar notes in a bank in Nantong, Jiangsu province on Aug 6, 2019. [Photo/Sipa]

BEIJING - China's foreign exchange reserves expanded to $3.1017 trillion at the end of May, from $3.0915 trillion at the end of April, official data showed on Sunday.

China's forex market operated steadily last month, with demand and supply basically balanced, said Wang Chunying, spokesperson for the State Administration of Foreign Exchange.

Wang attributed the pick-up in May to multiple factors including exchange rates and changes in asset prices.

Despite a complex external economic environment amid the COVID-19 pandemic, Wang said China's economy has seen a gradual restoration back to normal, and has resilience, potential and room to maneuver, providing solid foundations for the stability of forex reserves.

Echoing Wang's sentiments, Wen Bin, chief analyst at China Minsheng Bank, said with the implementation of proactive fiscal policies and monetary policy tools directly targeting the real economy, the sound long-term outlook of the country's economy will support the stability of forex scale.

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