The scale of China's foreign reserves is still close to 30% of the world's foreign reserves, ranking first in the world's foreign exchange reserves, 2.6 times and 4.5 times that of the second-ranked Japanese and the third-ranked Swiss respectively.
According to the latest data on the scale of foreign exchange reserves released by the People's Bank of China, at the end of 2020 1 39.9 billion US dollars, an increase of 20.7 billion US dollars or 0.66% compared with the end of 1, and it has rebounded for the eleventh consecutive month.
Extended data:
In addition, there are three reasons to explain the importance of a country's foreign exchange reserves. First of all, it plays the role of protector in international payment. At present, in such an era of record debt levels of sovereignty, enterprises and banks, this protector is frequently called.
Secondly, it can be used as capital for some industries, such as infrastructure industry. Finally, although most currencies in the currency basket of central banks are US dollars and euros, other currency reserves are gradually increasing, which helps to reduce the risk of domestic investment in the global market.
References:
People's Daily Online-China's foreign exchange reserves account for nearly 30% of the world.