Tuesday, October 21, 2025

China’s Banks Now Hold Over $1 Trillion In Foreign Reserves For First Time Ever

Chinese banks have seen their foreign currency deposits surge by over $260 billion in the first five months of 2021, putting the pool’s total growth to above $1 trillion for the first time.

According to data published by the People’s Bank of China (PBOC), the communist country’s commercial banks reported a combined record $1.38 trillion in foreign exchange at the end of May, with most being held in deposits. Similarly, the PBOC’s foreign reserves also surged to the highest in five years last month.

The latest growth comes as the demand for Chinese goods during the Covid-19 crisis accelerated exporters’ foreign earnings. The country’s robust economic recovery and strong currency have prompted foreign investors to sell their dollar holdings and purchase yuan instead, in order to buy Chinese bonds and stocks.

The sudden surge in capital inflows have caused China’s dollar deposit rates to collapse to near all-time lows. China’s central bank has already taken a proactive approach in cutting back dollar liquidity, including relaxing capital controls.


Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

China Anticipating its New Vehicle Sales to Fall by 10-20% in 2020

Although most auto manufacturing companies have returned to full production by now following a period...

Tuesday, July 14, 2020, 06:21:00 PM

Beijing Denies Zelensky’s Claims of Arming Russia in Ukraine War

China’s Foreign Ministry on Thursday rejected accusations by Ukrainian President Volodymyr Zelensky that Beijing is...

Friday, April 18, 2025, 11:08:00 AM

Crude Oil Prices on the Decline After China Releases Fuel Reserves to Boost Domestic Supply

Crude oil prices briefly receded from their multi-year highs on Monday, after China’s government released...

Tuesday, November 2, 2021, 04:51:00 PM

People’s Bank of China Adds 15 Tonnes Of Gold To Reserves

China’s central bank bought even more gold last month, as it looks to strengthen the...

Wednesday, February 8, 2023, 03:00:00 PM

China Vows to Retaliate if Washington Imposes Sanctions Over Neutral Stance on Russia-Ukraine Crisis

Beijing’s refusal to denounce Russia’s military operation in Ukraine prompted concern among White House officials,...

Wednesday, March 16, 2022, 05:01:00 PM