Original Title: At the end of July, my country’s foreign exchange reserves of US$3,235.9 billion, the market is expected to remain stable
On August 7, the State Administration of Foreign Exchange announced the latest data on the scale of foreign exchange reserves. Data show that as of the end of July 2021, my country’s foreign exchange reserves amounted to US$3.2359 billion, an increase of US$21.9 billion or 0.68% from the end of June.
Regarding the reasons for the changes in the scale of foreign exchange reserves in July, Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said that in July, my country’s foreign exchange market basically balanced supply and demand, and the market is expected to remain stable. In the international financial market, affected by factors such as the repeated COVID-19 epidemic, the monetary policy expectations of major countries, and macroeconomic data, non-US dollar currencies strengthened slightly, and global financial asset prices generally rose. Foreign exchange reserves are denominated in U.S. dollars, and the amount of non-U.S. currencies converted into U.S. dollars increases. Together with changes in asset prices and other factors, the scale of foreign exchange reserves increased during the month.
“In July, the scale of my country’s foreign exchange reserves reached 3,235.9 billion U.S. dollars, a record high since 2016.” Wen Bin, chief researcher of Minsheng Bank, said in an interview with the “Securities Daily” reporter. , The overall appreciation of non-US dollar currencies and the overall increase in the prices of major global assets, taking into account the effects of exchange rate translation and asset price changes, have led to a rebound in the scale of foreign exchange reserves; on the other hand, since the beginning of this year, the global economy has continued to recover, and the improvement in external demand has driven my country’s exports to maintain Rapid growth. Benefiting from the greater attractiveness of RMB assets, securities investment is showing a net inflow trend, and real trade and cross-border capital flows may contribute to the scale of foreign exchange reserves.
Zheng Houcheng, director of the Yingda Securities Research Institute, told a reporter from the Securities Daily that the reason for the increase in foreign exchange reserves in July also included the decline in the yields of 10-year treasury bonds in major developed economies in July. Among them, the dominant 10-year U.S. bonds The yield rate closed at 1.24% in July, a decrease of 0.21 percentage points from June, which boosted foreign exchange reserves. In addition, the trade surplus in July was 56.59 billion U.S. dollars, an increase of 5.06 billion U.S. dollars from June, a record high in the past six months, which also benefited foreign exchange reserves.
Regarding the future trend of the scale of foreign exchange reserves, Wang Chunying said that the current global new crown pneumonia epidemic is still evolving. Although there are many uncertain factors in the international economic and financial situation, my country’s economy continues to recover steadily, stabilizes and improves, and high-quality development has achieved new results. It will provide support for the overall stability of foreign exchange reserves.
“In the next stage, my country’s economic operation will be stabilized and stabilized, and external demand is expected to remain relatively strong, and my country’s foreign trade will continue to grow; RMB assets have the potential for allocation, and foreign exchange market supply and demand are expected to maintain a basic balance; RMB exchange rate flexibility will gradually increase , Which helps keep the scale of foreign exchange reserves stable.” Wen Bin said that the asynchrony of the global economic recovery has led to the lack of synchronization of the monetary policies of various countries. Vigorously promote the recovery of domestic demand, prevent the Fed’s monetary policy from turning risk in advance, and keep the RMB exchange rate basically stable at a reasonable and balanced level. (Securities Daily)
Massive information, accurate interpretation, all in Sina Finance APP