BEIJING – China's foreign exchange reserves rose modestly to $3.3433 trillion by the end of October 2025, marking a slight increase from the previous month and continuing a trend of stability amid global economic fluctuations. According to official data released by the State Administration of Foreign Exchange (SAFE) on November 7, 2025, the reserves grew by $4.7 billion, or 0.14%, compared to September's figure of approximately $3.3386 trillion.
This uptick exceeded market expectations, with analysts forecasting a potential dip to around $3.32 trillion, reflecting resilience in China's external financial position despite a strengthening U.S. dollar. SAFE attributed the growth to a combination of currency exchange transactions and rising global financial asset prices. In October, the U.S. dollar index climbed, yet gains in international stock markets and bond valuations helped bolster the value of China's diversified reserve holdings.
The reserves have now remained above the $3.3 trillion threshold for several consecutive months, underscoring China's robust economic buffers. This level represents the highest since late 2016 in some analyses, highlighting a recovery from periodic dips influenced by trade dynamics and capital flows. For context, China's reserves stood at $3.3387 trillion at the end of September 2025, following a $16.5 billion increase that month driven by similar factors of asset price appreciation and exchange rate adjustments.
In addition to forex holdings, China's official gold reserves continued their upward trajectory, reaching 74.09 million ounces in October, up from 74.06 million ounces in September. This marks the 12th straight month of gold accumulation by the People's Bank of China, a strategy aimed at diversifying away from dollar-denominated assets amid geopolitical uncertainties.
Economists view the steady reserves as a positive signal for the yuan's stability and China's ability to weather external shocks. Wen Bin, chief economist at China Minsheng Bank, noted that despite a nearly 2% rise in the dollar index during October, non-dollar asset gains provided a counterbalance. SAFE emphasized that China's economy remains on a solid footing, with ample reserves supporting currency stability and providing a safeguard against global volatility.
Historically, China has maintained the world's largest foreign exchange reserves since overtaking Japan in 2006, peaking at nearly $4 trillion in 2014 before moderate declines due to capital outflows and intervention to support the yuan. As of October 2025, these reserves far exceed those of other nations, with Japan holding around $1.3 trillion and Switzerland about $1 trillion.
The composition of China's reserves remains heavily weighted toward U.S. dollar assets, historically around 50-59% in recent disclosures, though diversification efforts—including increased gold and euro holdings—continue. This strategy helps mitigate risks from U.S. monetary policy shifts, such as potential rate changes by the Federal Reserve.
Market reactions were muted, with the onshore yuan trading steadily post-release. Analysts from Caixin highlighted that the October increase offset dollar strength through equity and bond market rallies globally. Looking ahead, SAFE projects ongoing stability, supported by China's trade surplus and controlled capital flows.
This modest growth aligns with broader trends in 2025, where reserves have fluctuated mildly but stayed elevated. From January to September, incremental rises reflected recovering exports and prudent monetary management. The October data reinforces China's position as a global economic powerhouse, with reserves equivalent to over 13 months of imports, well above international adequacy standards.
In related developments, China's international trade in goods and services continues to contribute positively, bolstering reserve accumulation. As geopolitical tensions persist, including U.S.-China trade frictions, these reserves serve as a critical tool for financial sovereignty.
Overall, the latest figures paint a picture of resilience. With reserves at $3.3433 trillion, China enters the final months of 2025 with substantial firepower to navigate uncertainties, from commodity price swings to currency wars. Experts anticipate similar modest adjustments in November, barring major disruptions.
