SAFE: At the end of February, the scale of our country's foreign exchange reserves was 3.1332 trillion US dollars

On March 7, the State Administration of Foreign Exchange (hereinafter referred to as "SAFE") announced the data on the scale of foreign exchange reserves at the end of February 2023. Statistics show that as of the end of February this year, the scale of our country's foreign exchange reserves was 3.1332 trillion US dollars, a decrease of 51.30 billion US dollars from the end of January, a decrease of 1.61%.

The foreign exchange bureau said that in February, influenced by factors such as global macroeconomic data and monetary policy expectations of major economies, the US dollar index rose, and global financial asset prices generally fell. Under the combined effect of factors such as exchange rate translation and asset price changes, the scale of foreign exchange reserves declined in the month.

"In February, the decline in our country's foreign exchange reserves was mainly affected by the rise in the US dollar index, the decline in global bond and stock prices, and the valuation caused by changes in exchange rates and asset prices," Wen Bin, chief economist at Minsheng Bank, told Securities Daily.

Wind data shows that in February, the dollar index rose 2.82% to 104.9; the Dow Jones Industrial Average fell 4.19%, the Nasdaq fell 1.11%, and the S & P 500 stock index fell 2.61%.

Pang Ming, chief economist and research director of JLL Greater China, told the Securities Daily that exchange rate factors and asset valuation factors are still the main reasons for the small, short-term and non-trend changes in the size of monthly foreign exchange reserves.

The SAFE pointed out that our country should strive to promote the steady recovery of the economy and promote high-quality development. The economy has huge potential and development impetus, which is conducive to maintaining the basic stability of the scale of foreign exchange reserves.

Wen Bin believes that the uncertainty of the current external environment has increased, the momentum of global economic recovery has continued to be weak, and the volatility of international financial marekt has increased significantly. However, our country has made efforts to promote steady economic recovery and high-quality development. The economy is resilient, has great potential and is full of vitality. The long-term positive fundamentals have not changed, which is conducive to maintaining basic stability in the scale of foreign exchange reserves.

"From the trend point of view, with the stabilizing economic policy effective, the macroeconomic trend is clear, our country's current account and direct investment and other balance of payments situation is stable, and cross-border capital flows are stable.foreign exchange marketThe smooth operation provides solid support for the overall stability of the scale of foreign reserves. "Pang Ming said.