China'S Foreign Exchange Reserves Have Declined To $3 Trillion And 650 Billion.

Since the first quarter of 2014, China has not actively increased its foreign exchange reserves, which has changed significantly compared with the reserve growth rate of US $77 billion over the previous quarter.

At the end of 6 in 2014, it reached a record close to the $four trillion mark and then continued to shrink.

Since the first half of last year's record high, China's foreign exchange reserves have fallen.

Data released by the people's Bank of China showed that, as of the end of 7, China's foreign exchange reserves had dropped to US $3 trillion and 650 billion, a decline for three consecutive months, while gold reserves decreased by 3 billion 160 million US dollars to 59 billion 238 million US dollars.

Since the international financial crisis in 2008, China's foreign exchange reserves have increased rapidly, reaching a record high of $four trillion at the end of 2014 in 6, and then continued to shrink.

In the two quarter of this year, China's foreign exchange reserves decreased by US $40 billion compared with the first quarter, which has shrunk for the four consecutive quarter.

Guan Tao, the senior researcher of China's financial forty person forum and director of the balance of Payments Division of the former foreign exchange bureau, said that the decline in foreign exchange reserves was partly due to the strong dollar exchange rate in the international market in the past year. The non dollar assets in foreign exchange reserves had shrunk in the US dollar, resulting in a decline in the book value of foreign exchange reserves, but this is not a real loss; the other is due to the outflow of capital during the period and the actual reduction in the principal amount of foreign exchange reserves. In the first quarter of 2014, from the three quarter to the first quarter of 2015, the total amount was 109 billion 200 million US dollars, while the balance of foreign exchange reserves decreased by 263 billion 200 million US dollars during the same period.

According to Guan Tao,

The actual decline is the "three phase" superposition of the domestic economy, the differentiation of international economic trends and the normalization of the monetary policy of the Federal Reserve. With the change of the RMB exchange rate from unilateral trend to two-way fluctuation since the two quarter of 2014, domestic institutions and individuals optimize the structure of assets and liabilities, increase the foreign exchange deposits and external assets, and reduce foreign exchange loans and external liabilities.

Some agencies have pointed out that since the first quarter of 2014, China has not actively increased its foreign exchange reserves, which has changed significantly compared with the reserve growth rate of US $77 billion over the previous quarter.

The era of China's large-scale establishment of foreign exchange reserves has obviously become a "past tense".