SAFE: At the end of April, the scale of our country's foreign exchange reserves was 3.2048 trillion US dollars

On May 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 April 2023. The data shows that as of the end of April 2023, the scale of our country's foreign exchange reserves was 3.2048 trillion US dollars, an increase of 20.90 billion US dollars from the end of March, an increase of 0.66%.

The SAFE said that in April, influenced by factors such as global macroeconomic data and monetary policy expectations of major economies, the US dollar index fell and global financial asset prices generally rose. Under the combined effect of exchange rate conversion and asset price changes, the scale of foreign exchange reserves rose in that month. Our country has made efforts to promote high-quality development, and economic development has shown a good trend of recovery, which is conducive to the continued stability of foreign exchange reserves.

Wen Bin, chief economist of Minsheng Bank, analyzed in an interview with the Securities Daily reporter that in April, influenced by factors such as monetary policy expectations of major economies, the US dollar index fell, and global financial asset prices generally rose. In terms of currencies, the US dollar exchange rate index fell by 0.8% to 101.7, and non-US dollar currencies generally appreciated. Under the combined effect of exchange rate conversion and asset price changes, the scale of our country's foreign exchange reserves rose.

"The scale of our country's foreign exchange reserves continued to rise in April, and the main driving factor was still the combined effect of exchange rate changes and asset price changes." Pang Ming, chief economist and research director of JLL Greater China, told the Securities Daily reporter that changes in the global stock market, bond market and foreign exchange market have formed a "positive valuation" effect on the scale of our country's foreign exchange reserves.

In Wen Bin's opinion, the current external environment is more unstable and uncertain factors, the global economic growth is slowing down, inflationary pressures are high, and international financial marekting is increasing. In terms of foreign trade, our country has made efforts to promote high-quality development. In terms of foreign trade, it has taken a number of measures to optimize the foreign trade development environment and trade mode, stabilize the trade of foreign trade enterprises and key products, and foreign trade has shown resilience. At the same time, international investors continue to be optimistic about the development potential and prospects of the Chinese market, and the overall balance of cross-border capital flows is conducive to the continued stability of foreign exchange reserves.

Looking to the future, Pang Ming believes that with the full recovery of normal operation of our country's economy and society, the momentum of economic development for the better will be further consolidated, and the effectiveness of macro policies, the vitality of business entities, the endogenous power of the economy, long-term sustainable development and high-quality development will continue to be enhanced. Expectedforeign exchange marketIt will continue to operate steadily, the balance of payments will continue to maintain an overall balance, and the attractiveness of RMB assets will be further enhanced. In this context, the overall scale of foreign exchange reserves will continue to remain stable.