China’s foreign exchange (FX) reserves climbed to $3.288 trillion in August, the latest data from the State Administration reported on Saturday.

Statistics from the State Administration of Foreign Exchange show that as of the end of August 2024 , China’s foreign exchange reserves were US$ 3,288.2 billion, representing an increase of US$ 31.8 billion from the end of July , a growth of 0.98% .

In August 2024, the US dollar index fell and global financial asset prices rose overall, affected by factors such as macroeconomic data and monetary policy expectations of major economies.

China stated that due to the combined effects of factors such as exchange rate conversion and asset price changes, the scale of foreign exchange reserves increased that month.

China’s stable economic operation and long-term positive development trend will not change, providing support for the continued basic stability of the scale of foreign exchange reserves, the State administration said.

Against the backdrop of a weaker dollar, the Chinese yuan’s strong performance since late July has stoked fears that Chinese exporters might rush to unload their huge stockpile of dollars for the Chinese currency, a move that economists say could result in wild swings in the foreign exchange market and aid the yuan’s further appreciation against the greenback.

The Chinese yuan gained 1.9% against the dollar in August, marking its biggest monthly rise since November. USD/CNY has fallen below the key 7.10 threshold in recent days, reaching year-to-date lows.