The Chinese State Administration of Foreign Exchange said in its website that at the end of July this year, the country was holding USD 3.1179T in foreign exchange reserves, up USD 5.8B, or 0.19% from end of June.
SAFE said that cross-border capital flows were generally stable. And, supply and demand in the foreign exchange markets was balanced. The jump in FX reserve was primarily due to non-US dollar currency exchange rate conversion and asset price changes
However, SAFE also noted the volatility in global financial markets and the “double rally” in USD exchange rates and interest rates. Some emerging markets were hit hard because of that. Additionally, “external uncertainties” increased due to escalating trade conflicts.
