Reserves Rise for the Month
China's foreign exchange reserves stood at $3.4188 trillion at the end of July 2026, up $2.5 billion or 0.07% from the end of June, according to data published by the State Administration of Foreign Exchange (SAFE) on August 7, 2026.
The increase was modest but notable for its direction: reserves had drifted lower earlier in the year, falling to $3.4163 trillion at the end of June 2026. The July gain leaves the stockpile comfortably above the psychologically important $3.4 trillion mark, a level Chinese reserves have defended throughout 2026.
| Metric | End-June 2026 | End-July 2026 | Change |
|---|---|---|---|
| FX reserves | $3.4163 trillion | $3.4188 trillion | +$2.5 billion (+0.07%) |
| Gold reserves | 75.44 million ounces | 76.08 million ounces | +640,000 ounces |
What Moved the Number
SAFE attributed the increase to a combination of currency translation and asset price effects. In its accompanying statement, the regulator said that in July 2026 the US dollar index declined while prices of major global financial assets were mixed, influenced by the global macro environment and the monetary policy stances of major economies.
Because a large share of China's reserves is held in non-dollar assets including euro, yen and sterling instruments, a weaker dollar mechanically raises the dollar-reported value of those holdings. Bond price movements in major markets provided an additional, partly offsetting effect.
Gold Buying Streak Reaches 21 Months
Data released the same day by the People's Bank of China showed gold reserves of 76.08 million ounces at the end of July, up from 75.44 million ounces a month earlier. That marks a 21st consecutive month of accumulation.
The 640,000-ounce addition was larger than several recent monthly increments. Market commentary noted that gold prices traded in a relatively subdued range at low levels during July, giving the central bank a comparatively favourable window to add to holdings.
Currency Backdrop
The reserve data arrived during an unusually eventful period for foreign exchange markets. Late July saw the Japanese yen slide toward 163 per dollar, its weakest level in roughly four decades, prompting Japanese authorities to intervene and the New York Fed to act on behalf of the US Treasury. Coordinated intervention was formally confirmed in early August. By the August 6 close, the yen remained soft at around 158.47 per dollar.
Against that turbulent backdrop, the yuan has been comparatively stable. The People's Bank of China has repeatedly signalled a moderately loose monetary policy stance for the second half of 2026 while pledging to keep the exchange rate basically stable at a reasonable and balanced level.
Why It Matters
- Reserve stability reinforces the policy space Beijing has for domestic easing without triggering capital-flow stress;
- The continued gold accumulation reflects a multi-year diversification effort away from dollar assets;
- Stable reserves alongside a $112.5 billion July trade surplus suggest the external account remains a source of resilience even as domestic demand stays soft.
The next reserve print, covering August, is due in early September and will be watched for evidence of whether the dollar's July weakness persisted.