China Foreign Exchange Reserves Fall in September, Gold Reserves Rise

China's foreign exchange reserves fell in September as a stronger US dollar and falling asset prices pressured global financial markets, while the country increased its gold holdings.

The State Administration of Foreign Exchange (SAFE) reported that China's foreign exchange reserves fell 1.11 percent to US$3.4003 trillion in September. SAFE attributed the decline to global macroeconomic conditions, major economies' monetary policies, currency movements, and asset price fluctuations. The regulator said new growth drivers and structural upgrades contributed to China's stable economic growth and foreign exchange reserves.

China increased its gold reserves for the 23rd month. In September, the country held 77.47 million ounces of gold, up 740,000 from August. Central banks worldwide have increased gold allocations amid changing global financial conditions, continuing gold purchases.