China’s FX Reserves Declined in February

China’s foreign-exchange reserves dropped $7.8 billion to $3.214 trillion in February due to the combined effect of a rising dollar index and a decline in global asset prices, the People’s Bank of China said Monday.

The result marked the second consecutive monthly decrease in reserves. It was in line with the expectations of economists polled by The Wall Street Journal, which estimated the country’s forex reserves at $3.216 trillion.

Given the progress of Covid-19 vaccinations, the fiscal policies of major countries and inflation expectations, the dollar index rose last month, while bond asset prices of major countries fell, said Wang Chunying, a spokesperson for China’s forex regulator.
Source: Dow Jones