Global Market: China gold reserves rise for 23rd straight month, forex reserves fall

China’s central bank increased its gold holdings in September, extending its buying streak to 23 consecutive months. Meanwhile, the country’s foreign exchange reserves fell more than expected as the US dollar strengthened, Reuters reported.

The People’s Bank of China raised its gold reserves to 77.47 million fine troy ounces in September from 76.73 million ounces a month earlier, according to data released by the central bank on Wednesday.

The continued accumulation underscores China’s efforts to diversify its reserves amid shifts in global currencies and financial markets.


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China’s foreign exchange reserves, the world’s largest, fell to $3.400 trillion at the end of September from $3.438 trillion a month earlier, according to central bank data cited by Reuters.

The decline was larger than economists had expected. A Reuters poll had forecast reserves at $3.420 trillion.

The drop came as the US dollar regained strength during the month. The dollar index, which measures the greenback against a basket of major currencies, rose 2.06% in September.

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The yuan, meanwhile, strengthened 0.22% against the US dollar during the month.

Movements in exchange rates and changes in the value of other reserve assets can affect the reported size of China’s foreign exchange reserves, Reuters reported.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)