China's Foreign Exchange Reserves Increase in January

China's foreign exchange reserves experienced a notable increase in January 2026, reaching a total of 3.3991 trillion U.S. dollars. This figure marks an increase of 41.2 billion dollars, or 1.23 percent, from the end of December of the previous year, as reported by official data released on Saturday.

According to the State Administration of Foreign Exchange, the rise in reserves coincided with a decline in the U.S. dollar index during January. Additionally, the prices of major global financial assets witnessed an overall increase, driven by shifts in fiscal and monetary policies as well as market expectations in key economies.

The administration highlighted that the combined effects of exchange rate conversions and fluctuations in asset prices played a significant role in contributing to the growth of China's foreign exchange reserves for the month.

China's economic landscape continued to demonstrate stable and improving performance, which is further bolstered by its developmental resilience. This enduring progress provides a strong foundation for maintaining a relatively stable level of foreign exchange reserves.

The persistence of economic stability and growth in China is critical as it reflects not only internal factors but also the broader implications of global economic conditions. Such dynamics are essential for understanding the nature of foreign exchange reserves and their fluctuation.