For textile and apparel exporters, importers and sourcing teams, the reserve reading is a macro indicator to monitor alongside China’s monthly foreign trade data and export performance.
China’s foreign exchange reserves rose by $19.5 billion, or 0.57 per cent, from July to $3.4383 trillion at end-August 2026.
For textile and apparel exporters, importers and sourcing teams, the reading is a macro signal to track with China’s trade and export data.
Currency translation and asset price changes led the increase; Wen Bin linked it to dollar weakness and expected resilient exports.
The increase in August was driven by the combined effects of currency translation and asset price changes, the State Administration of Foreign Exchange said in a statement. It also said China’s economy has remained generally stable and made solid progress, with resilience and vitality supporting the stability of the country’s foreign exchange reserves.
Commenting on the latest data, Wen Bin, chief economist at China Minsheng Bank, said the rise in China’s foreign exchange reserves came as the US dollar index fell 0.5 per cent in August to 99.4, with dollar weakness contributing to a positive valuation effect on the reserves, according to the country’s media reports.
Wen also said China’s exports are expected to maintain strong resilience going forward, which would continue to consolidate the foundation of China’s balance of payments. He said the global manufacturing upswing driven by AI-related capital expenditure is set to continue, providing a strong impetus for export growth, while foreign trade business entities are steadily expanding into diversified overseas markets and tapping new drivers of trade growth.
Fibre2Fashion News Desk (KD)
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