【China Economy】Foreign exchange reserves exceed 10-year high; PBOC increases gold holdings for 16 consecutive months

According to data from the State Administration of Foreign Exchange, as of the end of February 2026, China’s foreign exchange reserves stood at $3.42 trillion, reaching a over 10-year high, up $28.7 billion or 0.85% from the end of January, marking seven consecutive months of increase.

The State Administration of Foreign Exchange stated that in February 2026, influenced by macroeconomic data, monetary policies, and expectations in major economies, the U.S. dollar index rose, and prices of major global financial assets fluctuated. Factors such as exchange rate conversions and asset price changes collectively contributed to the increase in foreign exchange reserves that month.

The agency also noted that China’s economy remains stable with steady progress and a shift towards higher quality development. The long-term positive fundamentals and trends have not changed, which is conducive to maintaining the basic stability of foreign exchange reserves.

Continuously Increasing Gold Holdings for 16 Months

Additionally, the People’s Bank of China updated its official reserve asset data on the same day. As of the end of February, China’s gold reserves reached 74.22 million ounces, an increase of 30,000 ounces month-on-month, marking 16 consecutive months of accumulation.

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