China Foreign Exchange Reserves

Info

History

Chart

Impact:

Low

Source: People's Bank of China

Next Release:

Date:

Forecast: $3.32T

Period: Jun

What Does It Measure?

China's foreign exchange reserves measure the total amount of foreign currency held by the People's Bank of China (PBOC), reflecting the country's ability to manage its currency and international trade. This indicator primarily focuses on the stock of foreign currencies, gold, Special Drawing Rights (SDRs), and other reserve assets, providing insight into the nation's monetary stability and international economic position.

Frequency

The report on China's foreign exchange reserves is typically released on a monthly basis, presenting final figures that offer a well-rounded view of the reserves as of the end of the previous month, usually published in the first week of the following month.

Why Do Traders Care?

Traders closely monitor China's foreign exchange reserves as they hold significant implications for currency valuation, trade policies, and global economic stability. A rise in reserves may strengthen the Chinese Yuan (CNY) and positively influence investor sentiment, while a decline could invoke concerns about economic slowdown or capital flight.

What Is It Derived From?

The foreign exchange reserves figure is derived from various sources, including foreign currency transactions, capital account movements, and valuation adjustments due to fluctuations in exchange rates. The People's Bank of China compiles this data through an extensive review of financial flows and reserve component valuations.

Description

Preliminary reports of foreign exchange reserves provide an early estimate based on preliminary data, which is subject to revisions in the final report released later. The reserves are typically reported in U.S. dollar equivalents, facilitating comparisons with other countries and allowing analysts to determine reserve trends over time.

Additional Notes

Internationally, foreign exchange reserves may serve as a leading indicator of a country's economic health and capacity to withstand external shocks. In relation to similar indicators, such as trade balances and capital flows, China's reserves can provide a coincident perspective on broader economic conditions affecting both domestic and global markets.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for CNY, Bullish for Stocks. Lower than expected: Bearish for CNY, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise