China’s forex reserves fell US$34.97 billion to US$3.17 trillion in March

China’s foreign exchange reserves fell more than expected in March, official data showed on Wednesday, as the US dollar posted a gain against a basket of major currencies.

The country’s foreign exchange reserves – the world’s largest – fell US$34.97 billion to US$3.17 trillion last month, compared with the US$3.19 trillion expected by a Reuters poll of analysts and US$3.205 trillion in February.

Foreign inflows into Chinese stocks and bonds have been strong as China gallops ahead of other major economies in its recovery from the coronavirus pandemic.

The yuan fell 1.28 per cent against the US dollar in March, while the US dollar rose 2.52 per cent in March against a basket of other major currencies.

China held 62.64 million fine troy ounces of gold at the end of March, unchanged from the end of February.

The value of China’s gold reserves fell to US$105.93 billion at the end of March from US$109.18 billion at the end of February.