Foreign exchange reserves rebound to over $3.4 trillion in April; the central bank continues to increase gold holdings without pause

Securities Times Reporter He Jueyuan

According to the latest statistics released by the State Administration of Foreign Exchange on May 7, as of the end of April, China’s foreign exchange reserves stood at $34.105 trillion, an increase of $68.4 billion from the end of March, a rise of 2.05%. Currently, China’s foreign exchange reserves remain at a high level not seen in the past decade.

Previously, at the end of February 2026, China’s foreign exchange reserves reached $34.278 trillion.

“Over the past month, expectations for monetary policy in major overseas economies shifted, the US dollar index retreated from high levels, and the prices and valuations of major non-dollar currencies and assets rose, bringing obvious valuation effects and book gains to our foreign exchange reserves,” said Pang Ming, a senior researcher at the National Financial and Development Laboratory, in an interview with Securities Times. He noted that the increase in foreign exchange reserves in April was driven by market price factors and also reflected China’s resilience amid the complex global financial environment.

In terms of absolute size, the main sources of China’s foreign exchange reserves include trade surpluses, foreign direct investment (FDI), and various capital flows. This year, cross-border capital flows have remained generally stable, and the supply and demand in the foreign exchange market have maintained basic balance. Pang Ming explained that the strong rebound in exports in the first quarter, resulting in a current account surplus, along with increased international investor willingness to allocate funds to Chinese bonds and stock markets, have provided solid capital inflow support for foreign exchange reserves.

The State Administration of Foreign Exchange pointed out that China continues to consolidate and expand the steady and positive economic trend, with resilience and vitality further demonstrated, which is conducive to maintaining the basic stability of foreign exchange reserves.

The official reserve asset data updated on the same day also showed that as of the end of April, official gold reserves amounted to 74.64 million ounces, an increase of 260k ounces from the previous month. This marks the 18th consecutive month of gold accumulation since November 2024.

Between March 2025 and February 2026, China’s central bank consistently increased gold holdings by less than 100k ounces per month. As international gold prices began to fluctuate downward in March, the central bank’s gold purchases in March and April increased significantly.

The World Gold Council recently stated that central banks overall maintain a highly stable and sustained gold-buying trend, reflecting an increasing demand for diversification of foreign exchange reserves amid the increasingly complex geopolitical and trade environment, further highlighting gold’s important role as a strategic reserve asset.

Wang Qing, Chief Macro Analyst at Orient Securities, analyzed that the reason for the central bank’s increased gold holdings in April might be related to the sharp rise in international oil prices that month, along with cooling expectations of global monetary easing, including the Federal Reserve’s rate cuts, leading to fluctuations in international gold prices.

“Going forward, the central bank’s gold accumulation remains the main trend,” Wang Qing said. Currently, gold reserves in China’s official reserves still significantly lag behind the global average. Moreover, gold is widely accepted worldwide as a final means of payment, and increasing gold holdings can enhance the credibility of sovereign currencies and create favorable conditions for cautiously advancing the internationalization of the Renminbi.

(Edited by: Wen Jing)

Keywords: Foreign Reserves