China’s foreign exchange reserves climbed for a third consecutive month in October, reaching their highest level since 2016, as gains in global financial markets helped offset the pressure of a strengthening US dollar, reports Caixin. Data released Friday by the State Administration of Foreign Exchange (SAFE) showed reserves rose by $4.7 billion to $3.34 trillion at the end of October, a 0.1% increase from September. The total has now remained above $3.3 trillion for three straight months.
SAFE attributed the increase to a combination of asset price movements and currency translation effects. Although the US dollar index gained ground, the value of global financial assets rose, lifting the overall reserves
The persistent strength of China’s reserves underscores a shift from the rapid accumulation era of the early 2010s. In 2014, China’s holdings peaked at nearly $4 trillion, but Beijing later adopted a strategy to “actively slim down” its reserve stockpile. The current level—seen as more stable and manageable—is largely sustained by investment returns rather than direct currency intervention.