Central Bank Increases Gold Holdings for 9th Consecutive Month; Forex Reserves Stand at $3.2922 Trillion at End-July
China's central bank has increased its gold reserves for the ninth consecutive month.
Data released by the People's Bank of China on August 7 showed that China's gold reserves reached 73.96 million ounces at the end of July, up by 60,000 ounces from 73.90 million ounces at the end of June.
After 18 consecutive months of gold purchases, the central bank paused its gold accumulation after May last year but resumed purchases in November, continuing through July.
Meanwhile, the growth streak in forex reserves ended in July.
Data from the State Administration of Foreign Exchange (SAFE) on August 7 showed that China's foreign exchange reserves stood at $3.292235 trillion at the end of July 2025, down by $25.2 billion, or 0.76%, from the end of June.
SAFE attributed the decline to the combined effects of exchange rate fluctuations and changes in asset prices, driven by factors such as macroeconomic data, monetary policies, and expectations in major economies, which led to a stronger U.S. dollar index and mixed movements in global financial asset prices.
China's forex reserves had maintained a growth trend in the first six months of 2025, increasing by a total of $115.065 billion. In the first seven months, the reserves rose by $6.679 billion, $18.2 billion, $13.441 billion, $41 billion, $3.6 billion, and $32.167 billion, respectively, before falling by $25.187 billion in July.
SAFE stated that China's economy remains resilient, with strong fundamentals, multiple advantages, and significant potential. The long-term positive supporting conditions and fundamental trends remain unchanged, which will help keep forex reserves generally stable.
At a foreign exchange management work conference held on August 1 to discuss priorities for the second half of 2025, SAFE emphasized the need to improve the management of forex reserves with Chinese characteristics to ensure their safety, liquidity, and value preservation.
