Photo taken on June 20, 2011 shows the exchange rate on the screen of a computer in Beijing, capital of China. (Xinhua/Gong Lei)
BEIJING, April 8 (Xinhua) -- Cross-border capital influxes into China generally rebounded in March, reported Xinhua Finance citing Wang Chunying, deputy head and spokesperson of the State Administration of Foreign Exchange (SAFE) on Thursday.
Wang made the remarks when answering media questions about the foreign exchange (forex) reserve decline in March, saying that the basic balance between supply and demand on China's forex market continued in March.
By the end of March, China's forex reserves, denominated in U.S. dollars, decreased 25.8 billion U.S. dollars or down 0.8 percent from the end of February to 3.19 trillion U.S. dollars.
Wang attributed the monthly forex reserve decrease to comprehensive effects of multiple factors. Due to impacts from monetary policy changes in major economies, geopolitical situations and the COVID-19 pandemic, the US dollar index rose in March and prices of bonds of major countries mostly declined. Under such circumstances, the U.S. dollar-denominated forex reserves of China shrank slightly together with the asset prices change and other factors in March as value of the non-U.S. dollar currencies-denominated reserves decreased when converted into U.S. dollar.
However, China's strong economic resilience and bright long-term economic prospects are unlikely to change despite the COVID-19 pandemic, more complicated external environment and volatility on international financial market, thus the size of forex reserves is expected to maintain stable. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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