Azernews.Az

By Alimat Aliyeva

Last December, the People's Bank of China (PBOC), the country's central bank, reduced its foreign exchange reserves by 1.94%, or $63.5 billion, compared to November, Azernews reports.

A statement posted on the agency's website specified that by the end of last month, the nation's foreign currency reserves totaled $3.2024 trillion. The PBOC attributed the changes to a combination of factors, including an increase in the dollar index, a decrease in global prices for financial assets, macroeconomic conditions, and expectations regarding the monetary policies of major central banks.

In addition, the reduction in China's reserves was influenced by exchange rate fluctuations and changes in asset prices. "Overall, China's economy remains stable and resilient, and the process of high-quality development is progressing confidently. This helps maintain foreign exchange reserves at a stable level," the statement from the state administration read.

According to official data, in 2022, China's central bank reduced its foreign exchange reserves by 2.9%, bringing them down to $3.1277 trillion. However, in 2023, the financial regulator increased reserves by approximately 1.7%, reaching $3.238 trillion.

The fluctuations in China's foreign exchange reserves highlight the complexities of managing a large economy amidst global economic uncertainty, including challenges like currency movements and international trade dynamics.