Q: The latest data on foreign exchange reserves disseminated by the State Administration of Foreign Exchange show that China's foreign exchange reserves as of the end of April 2019 declined by USD 3.8 billion month on month. Could you tell us why such a change occurred? What would you say about the future trends of foreign exchange reserves?

A: As at the end of April 2019, China posted USD 3.0950 trillion in foreign exchange reserves, down by USD 3.8 billion or 0.1% month on month.

China's foreign exchange market performed stably in April. On the international financial market, the US dollar index rose slightly by 0.2%, while the global bond index remained basically unchanged. Due to the combined impact of exchange rate translation and asset price changes, China’s foreign exchange reserves fell slightly.

Due to the slowdown in the growth of global economy and international trade, China’s economy has been operating within a reasonable range since the beginning of this year. Market expectations and confidence have been boosted, supply and demand at the foreign exchange market has maintained basic equilibrium, cross-border capital flows through major channels have been further improved, and the size of foreign exchange reserves have remained stable on the whole.

Looking ahead, there will still be many uncertainties in the international economy and financial market, but China is expected to maintain good momentum of economic growth in the long run, and will continue to promote the reform and opening-up. Given the stability of domestic economy and policies, cross-border capital flows will remain basically balanced, which will provide a solid foundation for the overall stability of China’s foreign exchange reserves.