The offshore RMB fell more than 400 points against the US dollar and fell below the 7.24 mark

TMGM

On August 7, China's State Administration of Foreign Exchange released statistics showing that by the end of July 2023, China's foreign exchange reserves had reached US$3,204.3 billion, an increase of US$11.3 billion or 0.35% from the end of June, marking a month-on-month increase for two consecutive months .

The relevant person in charge of the State Administration of Foreign Exchange of China stated that in July 2023, affected by factors such as the monetary policies and expectations of major economies, world macroeconomic data and other factors, the US dollar index fell, and global financial asset prices generally rose. Due to the combined effects of exchange rate conversion and asset price changes, the scale of foreign exchange reserves increased that month. China's economy has great resilience and potential for development, and the fundamentals of long-term improvement have not changed, which is conducive to maintaining the basic stability of the scale of foreign exchange reserves.

TradeMax Global Markets

On the same day, the People's Bank of China released data showing that China's gold reserves at the end of July reported 68.69 million ounces, an increase of 740,000 ounces from the previous month.

At the same time, the balance of China's central bank's gold reserves rose slightly from US$129.934 billion at the end of June to US$135.360 billion, and its proportion in China's international reserve balance also rose from 3.84% at the end of June to 3.98%, but it was still far below the global average of 14 % level. This means that there is still a lot of room for diversification and decentralized allocation of China's international reserve assets.

At present, increasing the proportion of gold reserve assets has become a major global trend. According to relevant IMF data, by the end of 2022, global gold reserve assets accounted for 13.8% of international reserve assets, an overall increase of 3.7 percentage points from the end of 2008.