FINANCE

China’s Forex Reserves Rise Again as Dollar Sinks, Gold Holdings Climb

Published: Jan. 8, 2026 12:55 a.m. GMT+8

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China’s foreign exchange reserves grew by $11.5 billion to $3.3579 trillion at the end of December 2025, according tothe State Administration of Foreign Exchange. Photo: VCG

China’s foreign exchange reserves climbed for a second straight month in December to $3.358 trillion, as a weakening U.S. dollar lifted valuations. At the same time, the central bank extended its gold-buying streak to 14 months despite record-high bullion prices.

The State Administration of Foreign Exchange (SAFE) said Wednesday that reserves rose by $11.5 billion, or 0.34%, from November, closing the year at $3.358 trillion. The agency attributed the increase to a combination of currency translation effects and changes in global asset prices.

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China’s foreign exchange reserves rose to $3.358 trillion in December 2025, up $11.5 billion from November, partly due to a weaker U.S. dollar.
The central bank increased gold reserves for a 14th consecutive month, reaching 74.15 million ounces; gold prices surged nearly 65% in 2025.
Geopolitical tensions and dedollarization trends support ongoing diversification of reserves, with strong central bank demand for gold expected to continue.

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Who’s Who

China Minsheng Bank: Wen Bin, the chief economist at China Minsheng Bank, highlights that strong exports are crucial for China's balance of payments. He also notes that increasing global institutional confidence in renminbi-denominated assets helps maintain the stability of China's foreign exchange reserves.

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