March 2020: Largest Drop in China’s International Reserves since 2016

In March 2020, China's foreign exchange reserves plummeted by USD 46bn to USD 3.06tn, the largest drop since November 2016 and worse than expected. According to the People's Bank of China (PBoC)’s statement, stronger US dollar and a plunge in global asset prices due to the COVID-19 pandemic are two main reasons behind the move.

China's monthly foreign reserve change against actual foreign reserve (as of March 2020)

Despite the strong headwinds which China is still facing due to the implications of the epidemic and the strict measures to contain it, the authorities have the macro-prudential management tools available to stabilise the market if necessary.

Detailed data and analysis on the Covid-19 pandemic can be found in CEIC’s Coronavirus Data Monitor.