A teller counts U.S. dollar bills at a bank in Qionghai, south China's Hainan Province.Photo:Xinhua

 
China's foreign exchange (forex) reserves stood at $3.2922 trillion as of the end of July, down by $25.2 billion from June, a 0.76 percent decline month-on-month, official data showed. Meanwhile, China's central bank increased its gold holdings for the ninth consecutive month. 

In July, influenced by factors such as macroeconomic data and monetary policy expectations in major economies, the US Dollar Index rose, and global financial asset prices fluctuated, said the State Administration of Foreign Exchange (SAFE) in a statement published on Thursday.

Due to the combined effects of factors such as exchange rate conversions and changes in asset prices, China's foreign exchange reserves dropped in July, according to the statement. 

The SAFE emphasized that China's economy, with its stable foundation, significant strengths, robust resilience, and vast potential, continues to support long-term growth and maintain the basic stability of its foreign exchange reserves.

The country's forex reserves totaled $3.3174 trillion at the end of June. It was the 19th consecutive month that China's forex reserves surpassed the $3.2 trillion mark, and the sixth consecutive month-on-month increase, the Xinhua News Agency reported.

"In July, non-US currencies depreciated collectively. As forex reserves are denominated in US dollars, the depreciation of non-US currencies reduced the scale of reserves after exchange rate conversion," Wen Bin, chief economist at China Minsheng Bank, told the Global Times on Thursday.

As China's economy shifts from high-speed growth to high-quality development, changes in the structure of foreign trade and investment are inevitable, which may lead to adjustments in the scale of forex reserves, said Wen.

The global environment is increasingly complex and challenging as US tariff policies continue to disturb global trade. However, in July, China's exports withstood external pressure and achieved unexpectedly strong growth of 8 percent by optimizing product structure, diversifying trading partners, and expanding new momentum for foreign trade, Wen noted. 

"China's sustained and robust economic growth, resilient foreign trade, and global investors' optimism about new opportunities in China's capital markets all contribute to maintaining the basic stability of forex reserves," said Wen.

Meanwhile, the People's Bank of China (PBC), the central bank, increased its gold holdings for the ninth consecutive month, according to data released on Thursday. 

China's gold reserves stood at 73.96 million ounces (about 2,300.41 tons) at the end of July, an increase of 60,000 ounces (about 1.86 tons) compared with June, PBC data showed.

Amid volatility in international financial markets, China has been diversifying its foreign exchange reserve allocations in recent years by increasing holdings of other assets like gold in a bid to coordinate the safety and development of foreign exchange reserves, mitigate risks from excessive concentration, and support the country's high-quality development, Wen said.

Global Times