China’s Forex Reserves Reach Nine-Year High as Gold Buying Spree Continues
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China’s foreign exchange reserves climbed to their highest level since 2016 last month, buoyed by a softer U.S. dollar and a continued push by the central bank to build gold holdings.
Reserves rose by $3 billion in November to nearly $3.35 trillion, up 0.09% from October, according to the State Administration of Foreign Exchange (SAFE). The increase highlights the durability of Beijing’s external balance sheet amid easing trade tensions with Washington. Meanwhile, the latest gold purchases mark the 13th straight month of accumulation, signaling Beijing’s long-term strategy to diversify away from dollar-denominated assets.
SAFE attributed the gain to currency translation and asset price changes. A slide in the U.S. dollar — driven by shifting expectations around monetary policy — helped boost the value of non-dollar assets. The U.S. dollar index slipped to 99.43 from 99.75 in November, while the euro and the pound strengthened 0.53% and 0.65% against the greenback, respectively.
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- China’s foreign exchange reserves rose to $3.35 trillion in November 2024—the highest since 2016—with gold reserves increasing for the 13th consecutive month to 74.12 million ounces.
- Gains were supported by a softer U.S. dollar, rising bond prices, and continued gold accumulation, though gold still forms a small share of total reserves.
- Global central banks added 53 tons of gold in October 2024, with year-to-date purchases at 254 tons despite a slower pace.
- China Minsheng Bank
- Wen Bin, chief economist at China Minsheng Bank, highlighted that stable economic fundamentals in China supported the stability of its foreign exchange reserves. He also pointed to improved Sino-U.S. relations, specifically a 10% tariff cut by Washington, as beneficial for Chinese exports.
- J.P. Morgan Private Bank
- Alex Wolf, Managing Director and Global Head of Macro and Fixed Income Strategy at J.P. Morgan Private Bank, commented on central banks' gold reserves. He noted that gold still constitutes a relatively small portion of these reserves, particularly in emerging markets, and anticipates continued, albeit slower, interest in gold as prices increase.
- Late 2024：
- China began its 13-month streak of gold accumulation.
- Since March 2025：
- China's central bank has maintained a restrained gold buying pace, never exceeding 100,000 ounces per month.
- October 2025：
- Globally, central banks added a net 53 tons of gold, a 36% increase from the prior month.
- October 2025：
- China added 30,000 ounces of gold, matching the volume added in November 2025.
- Year-to-date as of October 2025：
- Global central bank gold purchases reached 254 tons.
- By November 2025：
- China has accumulated gold for 13 consecutive months, adding 1.33 million ounces since the streak started in late 2024.
- November 2025：
- China’s foreign exchange reserves reached their highest level since 2016, rising by $3 billion to nearly $3.35 trillion.
- November 2025：
- China's foreign reserves stayed above $3.3 trillion for the fourth straight month.
- November 2025：
- The U.S. dollar index slipped to 99.43 from 99.75.
- November 2025：
- 10-year U.S. Treasury note yield fell to 1.85%.
- November 2025：
- Washington cut tariffs by 10%, supporting Chinese exports.
- End of November 2025：
- People’s Bank of China reported gold holdings of 74.12 million ounces, having added 30,000 ounces during the month.
- November 2025：
- London spot gold prices surged 5.4% to $4,219 per ounce from $3,988.
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