FX.co ★ China's foreign currency reserves surge, defying expectations

China's foreign currency reserves have witnessed an unexpected surge for the second consecutive month, challenging financial forecasts and accumulating to $3.246 trillion in March, a 0.6% increase from the previous month. This rise contradicts analysts' predictions, who had anticipated a decrease to $3.21 trillion, leaving some to reevaluate their forecasts. Despite the yuan experiencing a slight decline of approximately 0.5% against the dollar, China's currency abundance celebration continues. The total reserve volume marked its highest point since December 2021 by the end of the first quarter. Additionally, the value of China's gold reserves also saw significant growth, increasing by more than $12 billion within a month. February also showcased a notable increase in China's currency reserves, growing by 0.2% and once again surpassing the skeptical outlooks of financial experts. This ongoing trend has left many pondering how China consistently manages to defy economic currents.