China’s Foreign Exchange Reserves Reach 8.5-Year High

BEIJING/SHANGHAI (Reuters) – China’s foreign exchange reserves rose to their highest level in over 8.5 years in August, according to official data released on Saturday. This increase is primarily attributed to a broadly weaker U.S. dollar.

The country’s foreign exchange reserves, the largest in the world, grew by $31.8 billion, reaching a total of $3.288 trillion last month. This marks the second consecutive monthly expansion and is the highest level since December 2015.

However, this figure narrowly missed analysts’ expectations of $3.289 trillion, as projected in a Reuters poll.

In August, the yuan appreciated by 1.9% against the dollar, whereas the dollar depreciated by 2.2% against a basket of other major currencies.