China's foreign reserves stood at $3.052 trillion in October, up by $23.5 billion or 0.77 percent from September, data released by the State Administration of Foreign Exchange (SAFE) on Monday showed, and experts said that the figure was within expectations.

Due to the combined effect of factors such as exchange rate conversions and changes in asset prices, the scale of foreign exchange reserves increased during October, according the SAFE.

While the global economic downturn and inflationary pressures persist, and major developed economies continue to tighten their monetary policies, the SAFE emphasized in Monday's statement that China's economy has strong resilience and considerable potential for growth.

There is wide room for maneuvering, and the long-term positive fundamentals will not change, the SAFE said, noting that the administration will continue to support the overall stability of the country's foreign exchange reserves.

Despite global uncertainties, China's foreign reserves remain stable, which is within expectations, experts said.

The increase of foreign exchange reserves in October was relatively small, which is within the moderate range of China's foreign exchange reserves, Dong Dengxin, director of the Finance and Securities Institute of the Wuhan University of Science and Technology, told the Global Times on Monday.

The current foreign exchange reserves are an optimistic signal for China's foreign trade companies and the country's economic recovery, the expert said.

"By increasing foreign reserves and expanding currency supply, we increase liquidity for China's real economy," Dong said.

The resilience of China's foreign exchange reserves has grown significantly over the past decade, according to the SAFE.

In 2021, transactions at China's foreign exchange market reached $36.9 trillion, a threefold increase from 2012. China has become the world's eighth-largest foreign exchange market, with over 40 currencies available for trading.

Global Times