Chinese foreign exchange reserves rose for the eighth consecutive month in September after weakening fears of capital flight. The foreign exchange reserves amounted to 3.1085 trillion USD at the end of September, rising by 16.98 billion USD from the previous month. The increase last month followed the 10.81 billion USD rise in August.
For the first time since June 2014, the Chinese foreign exchange reserves have risen for eight consecutive months, bringing the total to its highest level since 2016.
In January, Chinese foreign exchange reserves fell below 3 trillion USD, but the stabilization of the yuan has helped to smooth their growth since February.
At the same time, the Chinese economy grew by 6.9% in the first half of the year, with consumption, services and new innovation-oriented economic sectors taking on an increasingly important role for the economy. Encouraged by this, the global institutions, including the International Monetary Fund (IMF), are raising their country’s GDP forecasts.
GDP growth data for the third quarter is expected to come out on October 19, with Goldman Sachs forecasting growth of 6.9%.
Central bank data also shows that the country’s gold reserves shrank to 76.01 billion USD by the end of September from 77.7 billion USD a month earlier.