Q; The State Administration of Foreign Exchange (SAFE) has just released the latest data on foreign exchange reserves. Could you explain why such changes occurred in December 2019? What will be the future trends?

A: China posted USD 3.1079 trillion in foreign exchange reserves as at the end of December 2019, up by USD 12.3 billion or 0.4% month on month and by USD 35.2 billion or 1.1% from the beginning of this year.

In December, China's foreign exchange market remained in a basic equilibrium. Globally, due to trade situations, major central banks' stances on monetary policies and British election, the US Dollar Index and bond prices were in decline. Because of foreign exchange rate conversion and asset price changes, China's foreign exchange reserves rose slightly.

Throughout the year, in the face of increasing risks and challenges, China's major macroeconomic indicators remained within a reasonable range, and its economy was resilient, fueled by changing growth drivers. Therefore, China's foreign exchange market stayed stable, the balance of payments was in a basic equilibrium and foreign exchange reserves increased steadily.

Going forward, political and economic uncertainties will not abate globally, making financial volatility more likely across the world. Nevertheless, China's economic fundamentals are stable and sound, and will remain so over the long term. With a focus on the supply-side structural reform, we will strive for high-quality development driven by reform and opening up, and keep major economic indicators within an appropriate range, which will shore up the overall stability of China's foreign exchange reserves.