China'S Foreign Exchange Reserves Are Still Relatively Abundant.

According to the latest figures released by the people's Bank of China, China's foreign exchange reserves in October were 3 trillion and 120 billion US dollars, down 45 billion 727 million US dollars compared with September, the largest monthly decline in nearly 9 months, and the fourth month decline in China's US dollar denominated foreign exchange reserves.

In October, non US dollar currencies depreciated against the US dollar and asset prices returned.

Zhao Xijun, vice president of the school of Finance and finance, Renmin University of China, said: "our foreign exchange reserves are dominated by US dollar investment stations. Valuations are not affected.

Speaking of the reasons for the decline of China's foreign exchange reserves in October, Tan Yaling, President of the China Foreign Exchange Investment Research Institute, said: "our current foreign trade situation has great relations, because today's data, import and export indicators are still negative, and the whole trade data is not particularly prosperous.

It should be a fundamental factor in the shortage of foreign exchange reserves. "

The proportion of assets invested in other non US assets is about thirty percent. Recently, due to a series of factors such as the increase of US dollar interest rate and the improvement of the US economy, the US dollar has appreciated considerably relative to other currencies.

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Around 3%, we estimate that other currencies will shrink from two hundred to thirty billion dollars in foreign exchange reserves. "

At the same time, the US general election in October and the progress of Britain's de European process have a greater impact on the financial market, leading to a rise in the risk aversion of residents and enterprises and an increase in foreign exchange.

However, market participants also pointed out that in view of the pressure on the RMB exchange rate, the decline in foreign exchange reserves in October was more moderate than expected in the previous market.

Tan Yaling, President of the China Foreign Exchange Investment Research Institute, said that although China's total foreign exchange reserves declined to a relatively low level in recent years, China's foreign exchange reserves are still relatively abundant with the indicators of foreign debt solvency and import payment capacity. "Our foreign exchange reserves are still above US $3 trillion. According to the traditional textbooks, we can cope with import and debt repayment. A country has 36 months of foreign exchange reserves."

If we look at this indicator, the foreign exchange reserves of US $1 trillion will be enough.

Therefore, the foreign exchange reserves of more than 3 billion are still very abundant for China. At present, the change of foreign exchange reserves is cyclical and will not become inertia.

Experts also pointed out that future China

With the economic situation and exchange rate changes, it is likely to continue to increase.

Therefore, we should not be too pessimistic about China's foreign exchange reserves nor be too sensitive to avoid unnecessary burden and risk to foreign exchange reserves.