China Foreign Reserves Reaches $3.18 Trillion In March
According to the official data, the foreign exchange reserves of China inched higher in March. This comes at a time when the US Dollar lost the upper hand against other major currencies on Friday.
Overall, $51 billion (USD) was added to China's foreign exchange reserves. After the latest injection of inflow, the foreign reserves of China have touched $3.18 trillion.
Even famous analysts and economists were only expecting $3.149 trillion worth of foreign reserves. And just a month ago (February), the foreign reserves of China were sitting at $3.133 trillion.
This increase in the foreign reserves is an indication that Chinese exports are picking up steam, and their dollar value is also higher than the imports.
And if we look at the Chinese Yuan's performance during March, it gained 0.86% against the USD. During the same period of time, the US Dollar was down by 2.3% against other major currencies.
The gold reserves, which also play a key role in economic stability and currency stability, were also up during March. According to official sources, China had 66.50 million fine troy ounces of gold in March. Just last month, China only had close to 65.92 million troy ounces of gold.
If we look at the Gold's current rates, it means China now holds $131.65 billion worth of gold serves. By the end of February, China only had $120.28 billion worth of gold reserves.
To put it short, China now has more US Dollars and physical gold bullion in its possession than it did a month ago. These steps will most definitely give strength to the Chinese currency and even make it a more favorable choice for global trade.
If we look around, several countries have already made promises to start using the Chinese currency for global trades. The biggest names are the Saudi Arabia and the Russia which have already started to trade using Chinese currency!