BEIJING, CHINA / MENA Newswire / – China’s foreign exchange reserves fell 0.75% in June, official data showed, as valuation changes linked to currencies and asset prices reduced the reported dollar value of reserve holdings. The State Administration of Foreign Exchange said reserves stood at $3.4163 trillion at the end of June 2026. That marked a decline of $26 billion from the end of May.
Dollar strength and asset price shifts weigh on China’s June reserve valuation. (Credit – WAM)
The drop followed a May increase, when China’s foreign exchange reserves reached $3.4422 trillion. The June data kept reserves above the $3.4 trillion level, a closely watched mark in global markets. Foreign exchange reserves are a key measure of a country’s external financial position. They include foreign currency assets held to support payments, settlement needs, and broader market confidence.
SAFE said the June decline reflected the combined effect of exchange rate conversion and changes in asset prices. The agency cited macroeconomic data from major economies, monetary policy decisions and expectations at major central banks, a stronger dollar index, and mixed moves in global financial assets. It said these factors affected the value of reserve assets during the month.
Dollar strength weighs on reserves
China reports its reserves in U.S. dollars, so moves in the dollar can change the headline value of assets held in other currencies. A stronger dollar lowers the dollar value of non-dollar holdings when converted for reporting purposes. Asset price changes also affect reserves because part of the portfolio sits in marketable securities. These valuation effects can move the total even without direct reserve sales.
Official reserve assets data also showed China’s gold holdings rose to 75.44 million fine troy ounces at the end of June. That compared with 74.96 million ounces at the end of May. The dollar value of gold reserves fell to about $303.7 billion from about $340.8 billion a month earlier. The decline reflected lower reported gold valuation in the reserve assets table.
Reserve levels remain closely watched
China holds the world’s largest stockpile of foreign exchange reserves. The June figure remains a central indicator for investors tracking the yuan, capital flows, and China’s balance of payments. Foreign exchange reserves can shift because of trade receipts, cross-border investment flows, currency movements, and market prices. The monthly release offers one of the clearest official snapshots of reserve conditions.
SAFE said China’s economy remained generally stable and continued to improve in quality, supporting basic stability in foreign exchange reserves. The statement did not announce any policy change. It also did not cite intervention activity. The June report placed the monthly decline within market valuation effects, while the headline total showed China’s foreign exchange reserves staying near recent high levels.