China's foreign reserves reach $3.438 trillion as official gold purchases resume largest pace in three years
China's international currency reserves rose $19.5 billion in August, reaching $3.438 trillion, driven by a drop in the dollar and strong trade surpluses. Official gold stockpile additions totaled 650,000 ounces, marking the highest monthly gain since October 2023.
International currency reserves held by China rose by $19.5 billion in August, ending the month at a total of $3.438 trillion. According to data released by the People's Bank of China (PBoC), this increase was primarily driven by depreciation of the US dollar and a significant growth in commercial surpluses. These factors reignited concerns regarding the appreciation of the yuan amid geopolitical pressures on Chinese exports. Additionally, the country expanded its official gold reserves for the 22nd consecutive month. The stockpile increased to 76.73 million ounces by end of August, representing approximately $350 billion in value. This rise amounted to an addition of 650,000 ounces compared to the previous month's close. Market data from Wind Info confirms that this gain was the largest since October 2023, when monthly additions stood at 740,000 ounces. The August increment also exceeded the 640,000 ounce gain recorded in July and the 480,000 ounce increase in June. While China Daily noted these gains against historical benchmarks from mid-2023 and earlier months, the PBoC data established the specific figures for the current period.
