According to the report, in response to the four consecutive increases in the scale of foreign exchange reserves, the relevant person in charge of the State Administration of Foreign Exchange said that the stabilization of capital flows and the valuation of exchange rates have promoted the recovery of foreign reserves. In May, China's cross-border capital flows continued to stabilize and improve, and foreign exchange supply and demand continued to be basically balanced; International financial markets fluctuated, non-US dollar currencies generally appreciated against the US dollar, and asset prices rose. These factors have jointly promoted the recovery of foreign exchange reserves.
Experts said that the rise of foreign reserves for four consecutive months was mainly affected by two factors: first, since the beginning of this year, China's economy has been stable and improving, and the exchange rate of RMB against the US dollar has stabilized and rebounded, especially in May, when countercyclical factors were included in the formation mechanism of the central parity of RMB exchange rate, the exchange rate formation mechanism was more perfect. In that month, the appreciation of RMB against the US dollar exceeded 1%, and the expected reversal of RMB depreciation may turn the settlement and sale of foreign exchange from deficit to surplus, leading to an increase in the scale of foreign exchange reserves; Second, the valuation effects caused by the falling dollar index. In May this year, the US dollar index fell by about 2%, and the assets denominated in euros and yen in China's foreign exchange reserves increased after being converted into US dollars.
The relevant person in charge of the foreign exchange bureau believes that since the beginning of this year, China's economic operation has remained in a reasonable range, and at the same time, there have been more positive changes such as quality improvement, structural optimization, stamina enhancement, kinetic energy expansion and space expansion, which have further increased the factors that support the economy to maintain medium and high-speed growth and move towards the middle and high-end level, and the pace of economic stabilization and improvement has become more stable. The international financial market is relatively stable, cross-border capital flows and supply and demand in the foreign exchange market are basically balanced, and the RMB exchange rate has risen steadily. Boosted by this, residents and enterprises tend to be rational in purchasing foreign exchange. As the effect of financial market opening and expansion continues to emerge, it will further consolidate the foundation of stable and balanced development of cross-border capital flows and promote the stability of foreign exchange reserves.