China's forex reserves fall in June

China's foreign exchange reserves shrank to 3.214 trillion U.S. dollars at the end of June, down 7.8 billion dollars from a month earlier, official data showed Wednesday.

A staff member counts banknotes at a bank in Qionghai of south China's Hainan Province. [Photo/Xinhua]

The amount fell by 0.24 percent from the end of May, according to the State Administration of Foreign Exchange (SAFE).

In June, the forex market maintained stable operation, with rational transactions, said SAFE spokesperson Wang Chunying.

The spokesperson attributed the decline in forex reserves to the combined effects of currency translation and changes in asset prices.

Affected by factors such as the COVID-19 pandemic, the development of COVID-19 vaccines and expectations of major countries' fiscal and monetary policies, the dollar index saw an increase, while prices of financial assets in major countries rose last month, Wang said.

Although there are still uncertainties in the global economic and financial situation due to virus-induced risks overseas, China's economy has sustained a stable recovery, which will help maintain the basic stability of the forex reserves, Wang noted.