China’s Forex Reserves Remain Above $3.3 Trillion, Gold Reserves Rise for 17th Consecutive Month

Data released by the State Administration of Foreign Exchange (SAFE) today shows that as of the end of March 2026, China’s foreign exchange reserves have remained steadily above the $3.3 trillion mark, while its gold reserves have increased for the 17th consecutive month, reflecting the sound resilience of the country’s external economic sector.

Specifically, China’s foreign exchange reserves stood at $3,342.1 billion by the end of March 2026, a decrease of $85.7 billion, or 2.5%, from the end of February. A relevant person in charge of SAFE explained the monthly decline: “In March 2026, affected by factors such as the global macroeconomic environment and the monetary policies and expectations of major economies, the US dollar index rose and the prices of major global financial assets fell. The combined effects of exchange rate conversion and changes in asset prices led to the decline in foreign exchange reserves that month.”

The person in charge added that China’s economy has maintained an overall stable and positive momentum, with new progress made in high-quality development, which has provided solid support for the basic stability of foreign exchange reserve scale. According to a report from China Economic Net, the steady scale of foreign exchange reserves is also an important manifestation of China’s strong economic resilience and stable cross-border capital flows.

Wen Bin, chief economist at Minsheng Bank, commented on China’s external economic performance: “Since the beginning of this year, China’s export performance has exceeded expectations, with a year-on-year growth rate of 21.8% in January and February. This is not only a reflection of the resilience of foreign trade, but also a result of the diversification of China’s export markets and the upgrading of export commodity structure.” He noted that against the backdrop of oil prices impacting the global industrial and supply chains, China’s advantages in new energy manufacturing and the full industrial chain have become more prominent.

Regarding cross-border capital flows, Wen added that with the continuous expansion of access to the service industry and the steady deepening of institutional opening-up, the level of convenience for cross-border investment and financing has been continuously improved, which will ensure the stable operation of foreign direct investment. Meanwhile, the valuation advantages and allocation value of RMB assets are prominent, and securities investment will maintain a reasonable scale of inflow.

Gold reserves, an important part of the diversification of international reserves, have continued their steady growth momentum. Data on reserve assets released by SAFE on the same day shows that as of the end of March 2026, China’s gold reserves reached 74.38 million ounces, an increase of 0.16 million ounces from the end of February, marking the 17th consecutive month of increase.

Industry insiders stated that the People’s Bank of China’s continuous increase in gold reserves helps diversify the foreign exchange reserve asset portfolio and ensure the safety and liquidity of foreign exchange reserves. “As a globally accepted final means of payment, increasing gold reserves also enhances the credit of the sovereign currency and creates favorable conditions for the steady advancement of RMB internationalization,” one insider said.

The World Gold Council echoed this view, stating that in the current global landscape, gold’s role as an effective tool for diversifying investment portfolios and a buffer against uncertainties has become increasingly prominent. This aligns with the global trend of central banks increasing gold reserves to strengthen reserve resilience, as more than 90% of central banks surveyed expect to continue increasing gold reserves in the next 12 months.