China Foreign Exchange Reserves Slump Most in 10 Years

Foreign exchange reserves held and published by the People's Bank of China fell by $85.7 billion from the previous month to an equivalent of $3.342 trillion in March of 2026, the sharpest decline in ten years. The pullback was aligned with the surge in the dollar during the period as the outbreak of war in the Middle East at the start of the month drove global markets to pivot toward the greenback, pressuring the dollar-valuation of Treasury securities, gold, and other foreign exchange assets. Bullion held by the PBoC fell to an equivalent of $343 billion, even though the central bank took more tonnage in the period. National stockpiles rose by 160 thousand troy ounces in the period, the most in over one year.

China’s foreign exchange reserves rose by USD 28.7 billion to USD 3.428 trillion in February 2026 from USD 3.399 trillion in the previous month. The increase marked the seventh consecutive monthly gain and lifted reserves to their highest level since November 2015, supported by the Chinese yuan’s stronger performance against the U.S. dollar in recent weeks and valuation effects on non-dollar assets. Meanwhile, the People’s Bank of China continued to add to its gold holdings, extending its buying streak to a 16th straight month as the global gold rally persisted into February. The central bank’s gold reserves edged up to 74.22 million fine troy ounces by the end of the month, from 74.19 million ounces in January. In value terms, China’s gold reserves rose sharply to USD 387.59 billion at the end of February, compared with USD 369.58 billion a month earlier, largely reflecting higher global gold prices.

China’s foreign exchange reserves increased by USD 41.2 billion to USD 3.399 trillion in January 2026, up from USD 3.358 trillion in December 2025. This marked the sixth consecutive monthly rise and the highest level since November 2015, supported by a persistently weaker U.S. dollar. Meanwhile, the People’s Bank of China continued to add to its gold holdings for the fifteenth consecutive month, with reserves rising slightly to 74.19 million fine troy ounces in January from 74.15 million in December 2025. The value of these holdings climbed to USD 369.58 billion, up from USD 319.45 billion a month earlier. In 2025, China’s foreign exchange reserves increased in 11 months, rising by USD 155.512 billion over the year.