According to the latest data on foreign exchange reserves released by the People's Bank of China, at the end of January 2018, China’s foreign exchange reserves increased by US$21.5 billion compared with the end of December 2017. According to the person in charge of the State Administration of Foreign Exchange, in February, China’s cross-border capital flows and domestic and foreign entities’ transactions were generally stable. In the international financial market, factors such as the appreciation of major non-US dollar exchange rates and changes in asset prices work together, and foreign exchange reserves have increased slightly.

“The increase in foreign exchange reserves in January was mainly due to the improvement of the bank’s settlement and sale of foreign exchange and valuation effects.” Wen Bin, chief researcher of Minsheng Bank, said that the US dollar exchange rate has fallen to a stage low, and the rebound will rebound and weaken the valuation effect, indicating that The renminbi's expected long-term net foreign exchange balance is gradually widening. Therefore, the scale of future foreign exchange reserves must also focus on the impact of foreign trade.

Liu Jian, a senior research fellow at the Bank of Communications Financial Research Center, said: “In the short term, it is expected that the foreign reserve will maintain its growth momentum. Since February, the US dollar index has continued to fluctuate weakly, and the yuan has appreciated steadily against the US dollar. Capital may continue to be net inflows. The foreign reserve rebounded, however, after the concentration of pressure on the US dollar devaluation, the decline may slow down, and the positive contribution of exchange rate valuation may weaken.The negative impact of rising interest rates in developed countries on the valuation of bonds may still exist. It is likely that the exchange rate valuation factor will be turned into a capital inflow factor."

The person in charge of the foreign exchange bureau stated that China's economic restructuring and optimization and upgrading are speeding up, and the economic fundamentals are expected to continue their steady growth. As the global economy recovers, major central banks will gradually tighten monetary policy. Driven by fundamental factors, China’s cross-border capital flows and foreign exchange supply and demand will be more balanced, and the two-way floating characteristic of the RMB exchange rate will become more apparent. Under the combined effects of domestic and international economic and financial situations, the scale of China’s foreign exchange reserves will remain generally stable.