China Raises Foreign Exchange Reserves by $4.9 Billion to $3.4052 Trillion in October
Key Facts
China’s foreign exchange reserves rose to $3.4052 trillion at the end of October 2026, up $4.9 billion, or 0.14%, from the end of September, according to the State Administration of Foreign Exchange (SAFE). The agency said the increase came as the dollar index rose and global financial assets posted mixed performance. This put monthly reserve growth at a modest pace despite a rise in the overall balance. Meanwhile, SAFE data showed the amount of gold held in reserves rose to 78.30 million ounces at the end of October, from 77.47 million in September. The update thus combined an increase in foreign exchange reserves with China’s continued rise in its reported gold holdings.
SAFE attributed the change in foreign exchange reserves to the combined effect of exchange-rate conversions and changes in asset prices, and did not include gold purchases in its explanation of the increase. It said the dollar index rose during October, influenced by global economic data, policies and expectations in major economies. It also said major global financial asset prices moved in mixed directions during the month. These factors illustrate how the balance calculated in dollars can change with currency and market movements, alongside reserve flows themselves. The agency’s announcement of a monthly increase in reserves was consistent with this explanation, which centered on currency conversions and asset prices.
China’s gold holdings increased for a 24th consecutive month in October, according to Xinhua News Agency, citing the People’s Daily. In the official table, the quantity rose from 77.47 million ounces at the end of September to 78.30 million at the end of October. The dollar value of the holdings moved in the opposite direction, however, falling from $323.517 billion to $306.411 billion over the same period. The divergence between quantity and value shows that the increase in ounces did not prevent a decline in the value recorded in dollars in the reserve table. The monthly comparison shows continued additions to gold alongside a drop in its dollar valuation.
China’s gold buying coincided with a fall in prices during October; an Investing.com report attributed to Reuters said the metal fell about 7% and ended the month below $4,000 an ounce after touching a one-year low. Globally, the report cited the World Gold Council as saying net central bank purchases totaled 321 tonnes between July and September 2026. The report described this as the strongest quarterly total since the final three months of 2024. These figures provide broader context for gold buying, as China continued to increase its holdings during a month in which the metal’s price fell. China’s gold quantity and dollar value remain separate measures of the reserve trend, with the former rising and the latter falling in October.
Attention now turns, after the October reserve announcement, to China’s consumer price index report for the same month, scheduled for release on November 9, 2026, at 9:30 a.m. Beijing time, according to the National Bureau of Statistics calendar. The report provides a near-term update on Chinese price data following the release of the reserve figures. The official calendar also sets the release of the November purchasing managers’ index for November 30 at 9:30 a.m. Beijing time. The inflation report therefore comes first among the dates listed in the calendar, followed by the PMI reading at the end of the month. Both releases will be among the upcoming Chinese economic data to watch.