China’s Forex Reserves Shrink as U.S. Dollar Gains and Markets Slide

What’s new: China’s foreign exchange reserves fell by $56.5 billion to $3.071 trillion in June, the lowest since March 2020, official data showed Thursday.

In the first half of the year, the country’s forex holdings shrank by $178.9 billion, according to the State Administration of Foreign Exchange (SAFE).

Why: SAFE attributed the June drop to the increasing strength of the dollar and drops in major financial markets.