According to Zhongxin Jingwei, on10.7, official website 65438, the central bank, showed that at the end of February 2020, China's foreign exchange reserves stood at $3.216522 billion, an increase of $38.032 billion from the previous month. Wen Bin, chief researcher of China Minsheng Bank, told the Zhongxin Jingwei client that the change in valuation was the main reason for the increase in foreign exchange reserves in June 5438+February; In addition, actual trade and cross-border capital flows contributed to the growth of foreign exchange reserves this month. Overall, the scale of China's foreign exchange reserves remained relatively stable. In 2020, the scale of foreign exchange reserves will increase by US$ 654.38+US$ 008.6 billion, indicating that China's foreign exchange reserves have a relatively solid and stable foundation.

Regarding the reasons for the changes in foreign reserve data, Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, explained that in June 5438+February, China's foreign exchange market was generally stable and the market transactions were rational and orderly. In the international financial market, influenced by the progress of vaccines in COVID-19 and the monetary and fiscal policies of major countries, the US dollar index fell, while the prices of non-US dollar currencies and assets in major countries rose. Foreign exchange reserves are denominated in US dollars, and the amount increases after non-US dollar currencies are converted into US dollars. In addition, factors such as rising asset prices also have the same effect, and the scale of foreign exchange reserves increased in the month.

Wang Chunying pointed out that in the future, the world economic situation is complicated and severe, and the derivative risks caused by the epidemic can not be ignored. There are still many uncertainties in the international financial market. However, China's foreign exchange market has the conditions to maintain a stable and balanced operation, and the scale of foreign exchange reserves will also be generally stable.

Second, how to treat the record high of foreign exchange reserves?

It is perfectly normal for China's foreign exchange reserves to hit a new high. How should we look at this matter?

First of all, from the overall economic point of view, 2020 will be a very difficult year for the whole China economy. At the beginning of 2020, we experienced the impact of the epidemic. Under great pressure, we resisted the pressure and realized the improvement of the overall economy. We not only resumed production and work, but also achieved economic recovery, becoming the only economy that maintained positive economic growth under the unprecedented changes in the world in 2020. Therefore, it is normal for us to see that China's foreign exchange reserves have reached a new high, at least it is the final result of China's long-term sustained and stable economic development. Therefore, from a macro perspective, it is normal for foreign exchange reserves to hit a new high, which is the embodiment of the overall economy.

Secondly, from another perspective, when foreign exchange reserves hit a new high, will it be a good thing or a bad thing for China? Objectively speaking, the growth of foreign exchange reserves is both a good thing and a bad thing. Why do you say that?

First, from a good point of view, a country's foreign exchange reserves should at least deal with a country's ability to resist risks and the important ability of financial stability in the international market. We can see that during the Asian financial crisis, it was the Asian countries that were unable to resist the huge impact of the financial crisis because of their small foreign exchange reserves. The end result is that all countries in Southeast Asia have seen the phenomenon of currency market collapse. So at least the cases of Southeast Asian countries tell us that if a country's foreign exchange reserves are too small, it is a very big risk event, so it is absolutely impossible to have too few foreign exchange reserves. At least for a stable China finance, a certain level of foreign exchange reserves is actually very important. Therefore, when foreign exchange reserves fall on a large scale, we will be very alert to financial risks similar to those in Southeast Asia.

Secondly, from the perspective of bad things, I don't understand how China's foreign exchange reserves come from. In a sense, our current foreign exchange reserves are all China enterprises, which have gone through all kinds of hardships and gained bit by bit through sweat and efforts. It can be said that every penny of our foreign exchange reserves is hard-won, but the problem is that our foreign exchange reserves, in a sense, still exist in the form of dollars, but we must know that the dollar has its big problems. The dollar is just a kind of paper money, not a universal equivalent recognized by the world like gold. Therefore, under such circumstances, the central bank of any country has a tendency to increase economic growth by expanding the circulation of money, which is actually more obvious than other central banks. Therefore, when our foreign exchange reserves are all in the form of dollars, there will be great risks. If we are not careful, our hard-earned foreign exchange reserves may be lost through the depreciation of the US dollar.

Therefore, the current increase in foreign exchange reserves is both a good thing and a bad thing, and we must deal with it well.