Official data from the economic powerhouse known as China reveals that the country's Forex reserves have reached $30.205 trillion. This comes at a time when the US Dollar lost ground against other currencies.
Overall, the increase in China's FX reserves was way ahead of the market expectations. In simple terms, more inflows of foreign currency and fewer outflows lead to an increase in the FX reserves. In the case of China, that's what we are seeing since the exports and capital inflows remain strong.
As per the reports, the foreign reserves of China increased by 21$ billion and touched the $3.205 level. This is one of the world's largest reserves and reveals the economic power of China.
The economists were expecting a number of around $3.192 trillion only, but it appears that China has even surprised them!
Just a month ago, China's foreign reserves were around $3.184 trillion, which reveals that the country's reserves are rising steadily.
During April, the Chinese currency Yuan actually lost against the US Dollar by 0.63%. At the same time, the US Dollar gained 0.94% against the major currencies, which reveals the US Dollar's strength.
Similarly, China now has 66.76 million ounces of gold which were near 66.50 million ounces just a month (March) ago. If we look at the market value of China's gold serves, it now stands at $132.35 billion, while it was only at $131.65 billion in March.
While China reports yet another increase in its Forex reserves, the US economy appears to be struggling with rising debt. The country has already reached its debt ceiling and is now attempting to further push the ceiling higher. This also points to the fact that the USA is losing the race against China in terms of economic power.
Especially the manufacturing industry and the export centered businesses of the USA will need to make a change for good to compete against China.