FX.co ★ China Foreign Exchange Reserves Decline

China’s foreign exchange reserves declined to $3.4 trillion at the end of September 2026, a decrease of $38.1 billion from the previous month. The State Administration of Foreign Exchange (SAFE) attributed the drop mainly to the strengthening of the US dollar and rising US Treasury yields, which likely drove currency translation effects and changes in asset valuations. At the same time, the People’s Bank of China increased its gold reserves to 77.47 million fine troy ounces, up from 76.73 million ounces at the end of August, marking its 23rd consecutive month of gold purchases. SAFE noted that China’s economic fundamentals remain solid, underpinning the overall stability of the country’s foreign exchange reserves.