China's Gold Reserves Increase for 17 Consecutive Months

Latest statistics show that by the end of March this year, China's gold reserves stood at 74.38 million ounces, an increase of 160,000 ounces from 74.22 million ounces at the end of February. The People's Bank of China has been increasing its gold holdings since November 2024, now for 17 consecutive months. Data released by the State Administration of Foreign Exchange on the 7th showed that China's foreign exchange reserves were $3.342123 trillion at the end of March, a decrease of $85.684 billion (approx. 2.5%) from $3.427807 trillion at the end of February. The Administration stated that influenced by the global macro environment and monetary policies of major economies, the USD index rose, and prices of major global financial assets fell. The scale of forex reserves decreased due to the combined effects of currency conversion and asset price changes. Wen Bin, chief economist at China Minsheng Bank, noted that rising oil prices fueled inflation expectations, leading the market to bet on Fed rate hikes, which supported the USD. He believes that while reserves fluctuated, China's strengths in new energy manufacturing and industrial chains support the fundamental stability of its forex reserves.