China's FX Reserves Rise to $3.405 Trillion in October
China's foreign exchange reserves rose $4.9 billion in October. The PBOC tightened reserve rules to slow yuan gains, according to WSJ.
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what happened
China's foreign exchange reserves edged higher in October, according to the People's Bank of China, gaining $4.9 billion to reach $3.405 trillion. Economists polled by The Wall Street Journal had expected $3.41 trillion.
The backdrop is a strong yuan, which recently reached a four-year high against the dollar on the back of robust exports. To curb the rally, the PBOC changed forex reserve rules on Tuesday, requiring financial institutions to hold more foreign-currency deposits at the central bank.
why it matters
Moody's expects the tighter onshore dollar liquidity to moderate the yuan's rise rather than reverse it, while ING sees the step as largely symbolic. For markets, it signals authorities do not want a fast currency appreciation that would hurt exporters. The PBOC also lifted its gold holdings to 78.3 million troy ounces in October from 77.47 million, extending a two-year buying streak.
market impact
Yuan and dollar: tighter liquidity slows yuan gains; gold: China keeps adding to reserves
- USD/CNY pressure up — tighter onshore dollar liquidity should slow yuan appreciation
- Gold pressure up — China's central bank kept buying gold in October
tags
instruments
sources
- China Forex Reserves Edged Up in October — WSJ, 7 November 2026 at 04:31 UTC
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