China Forex Reserves Edged Up in October

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, November 7, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

The People’s Bank of China reported on Saturday that the nation’s foreign exchange reserves increased by $4.9 billion to reach $3.405 trillion at the end of October. This slight rise occurred while the yuan strengthened to a four-year high against the dollar, a trend attributed to robust export performance. In response to the currency’s rapid appreciation, the central bank adjusted forex reserve rules on Tuesday, mandating that Chinese financial institutions hold higher levels of foreign-currency deposits. Moody’s Ratings analysts stated that this measure tightens onshore dollar liquidity to moderate the yuan’s rise, which they believe will have a small but positive effect on exporters by easing margin pressure. ING economist Lynn Song characterized the action as a symbolic pushback against the speed of appreciation, noting it stopped short of aggressive intervention such as sharply adjusting the daily reference rate.

Background

• Economists surveyed by a financial news outlet had projected end-October reserves of $3.41 trillion.
• China’s central bank extended its gold buying streak to two years, increasing holdings to 78.3 million troy ounces in October from 77.47 million the prior month.
• Analysts indicated that policymakers aim to prevent fast currency appreciation from undermining the global competitiveness of Chinese exporters.

Read the full article at wsj.com

More from Saturday, November 7: