China's Forex Reserves Total US$3.4188 Trillion at End-July; Gold Reserves Rise for 21st Consecutive Month

On August 7, statistics released by the State Administration of Foreign Exchange (SAFE) showed that China's foreign exchange reserves stood at US$3.4188 trillion at the end of July 2026, up US$2.5 billion from the end of June, an increase of 0.07%.

SAFE stated that in July 2026, affected by global macroeconomic conditions and monetary policy among major economies, the U.S. dollar index declined while major global financial asset prices were mixed. The combined effect of exchange rate conversion and asset price changes lifted the foreign exchange reserve scale for the month. China's economy is showing new drivers of growth, an improving structure, and strong resilience and vitality, conditions that are conducive to maintaining basic stability in the foreign exchange reserve scale.

Wang Qing, chief macro analyst at China Golden Credit Rating International, told the Securities Daily that the current foreign exchange reserve scale above US$3.4 trillion is at a relatively ample level. All factors considered, the reserve scale may stabilize around US$3 trillion going forward. Against the backdrop of heightened external political and economic volatility, a moderately ample foreign exchange reserve scale provides important support for the RMB exchange rate to maintain a reasonable equilibrium level and serves as a ballast against various potential external shocks.

Wen Bin, chief economist at China Minsheng Bank, told the Securities Daily that looking ahead, promoting balanced import-export development remains a policy priority and helps keep the current account surplus at a reasonable and balanced level. With respect to cross-border capital flows, the net inflow trend is expected to continue.

Gold reserve data released the same day showed that at the end of July, China's gold reserves reached 76.08 million ounces, up 640,000 ounces month-on-month, with the increase expanding further compared with June. This marks the 21st consecutive month that the People's Bank of China has increased its gold holdings, underscoring the central bank's continued confidence in gold as a strategic reserve asset.