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 June 2019 rose by USD 18.2 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 June 2019, China's foreign exchange reserves recorded USD 3.1192 trillion, up by USD 18.2 billion or 0.6% month on month.

In June, the USD index fell and the asset price rose on the international financial market due to factors such as the global trade situations and monetary policies of central banks of major countries. Due to the combined impact of exchange rate translation and asset price changes, China’s foreign exchange reserves rose.

Since the beginning of this year, despite increasing uncertainties and destabilizing factors in the external environment, China's economy has maintained overall stability and operated within a reasonable range. Supply and demand in the foreign exchange market are basically balanced, the cross-border capital flows through major channels have shown positive changes, and the foreign exchange reserves have steadily increased.

Looking ahead, although the international economic and financial situations will remain complicated, China will continue to advance the high-quality economic development and actively implement the measures of opening up to the outside world in an all-around manner. The economic growth is expected to become more resilient and sustainable. All these will provide strong support for the stability of China's foreign exchange market and thus provide a solid foundation for the overall stability of the foreign exchange reserves.