Stable operation of China's foreign exchange market

China's foreign exchange reserves stood at $3105.2 billion as of the end of October, up $12.7 billion or 0.4% from the end of September, according to data released by the State Administration of foreign exchange on July 7. In October, the operation of China's foreign exchange market was generally stable. Influenced by the global trade situation, monetary policies of major central banks and the prospect of brexit, the US dollar index fell and the bond prices of major countries fell. The scale of foreign exchange reserves has increased due to the combination of factors such as exchange rate translation and asset price changes. The change of valuation has a certain contribution to the increase of foreign exchange reserves in October. " Wen bin, chief researcher of China Minsheng Bank, said that from the main exchange rate changes, the dollar index weakened in October, from 99.4021 at the end of September to 97.3133 at the end of October, with a depreciation rate of 2.1%; the euro rose to 1.1153 from 1.0899, with a appreciation rate of 2.3%; the yen rose to 108.025 from 108.075. The valuation of foreign exchange reserves in Euro and yen is increased after being translated into US dollars. In terms of bond yield, the yield of us 10-year Treasury bonds rose to 1.78% from 1.68% at the end of September, which led to the decrease of US Treasury bond price held by China and the decrease of book value of foreign exchange reserves.

On the whole, Wen bin believes that exchange rate translation has stronger effect than asset price change, and valuation change contributes to the increase of foreign exchange reserve scale in October. On the whole, the scale of China's foreign exchange reserves is stable Wen Bin said that China's foreign exchange reserves have always been fluctuating around us $3.1 trillion. In the future, although the international risk challenges cannot be ignored and there are still many uncertainties, the positive development trend in China's economic stability has not changed, the supply and demand of foreign exchange market is generally stable, cross-border capital flows are basically balanced, and it is fully capable of resisting various risks, and the foreign exchange reserve model will continue to remain stable. Wang Chunying, spokesman and chief economist of the safe, said that since this year, in the face of the complex situation of significantly increased international risk challenges, China's economy has maintained a generally stable, steady and progressive trend, with main indicators in line with expectations and steady progress in structural adjustment. On this basis, China's cross-border capital flows remain stable, the supply and demand of the foreign exchange market are basically balanced, and the scale of foreign exchange reserves is rising steadily.