In the first four months of this year, China’s foreign exchange reserves continued to decline by more than $100 billion. The decline in April was the biggest drop since November 2016 nearly five and a half years ago.
According to the China Administration of Foreign Exchange, from the end of December last year to the end of April this year, China’s foreign exchange reserve balance continued to decline, with a cumulative decrease of $130.4 billion—a decrease of 4 percent from the end of last year.
At a press conference on May 7, the China Administration of Foreign Exchange claimed that the rise in the dollar index, the decrease in the amount of non-dollar currencies converted into dollars, and the changes in asset prices were the main reasons for the decline in the size of China’s foreign exchange reserves in April….