MNI BRIEF: PBOC Held Gold Purchases In Aug, Forex Reserves Rose
The People’s Bank of China continued to suspend gold purchases in August for the fourth consecutive month, while China’s foreign-exchange reserve increased USD31.8 billion month-on-month thanks to a rise in global financial asset prices driven by the weak U.S. dollar, according to the State Administration of Foreign Exchange on Saturday.
China's foreign exchange reserves amounted to USD3.28 trillion at the end of August, marking the eighth consecutive month they have held above the USD3.2 trillion level. SAFE attributed the increase to the combined effects of exchange rate adjustments and asset price changes. (See MNI: PBOC Seen Capping Yuan Fixing At 7.10 After Rally)
Meanwhile, China’s gold reserves stood at 72.8 million ounces at the end of August, unchanged from the previous month. In May 2024, amid rising international gold prices, the central bank ended an eighteen-month streak of increasing gold reserves. Currently, China’s gold reserves rank sixth globally, with a cumulative increase of 10.16 million ounces over 18 months before May.