According to the data released by the State Administration of foreign exchange on June 7, by the end of May 2022, the scale of China's foreign exchange reserves was US $3127.8 billion, an increase of US $8.1 billion or 0.26% over the end of April. Insiders said that the rebound in the scale of foreign exchange reserves in May was mainly caused by the increase in valuation. Looking forward to the future, the long-term positive fundamentals of China's economy have not changed, which will support the overall stability of the scale of foreign exchange reserves. Wangchunying, deputy director of the State Administration of foreign exchange and spokesman, said that in May 2022, the operation of China's foreign exchange market was generally stable, and the domestic foreign exchange supply and demand remained basically balanced. In the international financial market, influenced by the monetary policies and expectations of major countries, global economic growth prospects, geopolitical situation and other factors, the US dollar index fell slightly, and the prices of financial assets in major countries rose and fell. Data show that in terms of currency, the US dollar exchange rate index fell 1.2% to 101.8; Among non US dollar currencies, the euro rose 1.8%, the pound rose 0.2% and the yen rose 0.8%. In terms of assets, the hedged Global Bond Index denominated in US dollars fell 0.1%, basically unchanged from the previous month; The S & P 500 stock index closed flat at 4132, while the euro zone Stoxx 50 index fell 0.4% and the Nikkei 225 index rose 1.6%. "Foreign exchange reserves are denominated in US dollars. The amount of non US dollar currencies increases after being converted into US dollars. Combined with the changes in asset prices and other factors, the scale of foreign exchange reserves rises in the current month." Wangchunying said. This month, the scale of foreign exchange reserves ended the previous four consecutive months of decline, and remained above US $3.1 trillion for the 25th month. Looking ahead, wangchunying said that the current external environment is still complex and severe, the global economy faces more risks and challenges, and there is still great uncertainty in the international financial market. However, China has effectively coordinated epidemic prevention and control and economic and social development. The long-term fundamentals of the economy have not changed, and will support the overall stability of the scale of foreign exchange reserves. Wenbin, chief researcher of China Minsheng Bank, also said that, on the one hand, China's economy is resilient and has large room for manoeuvre, and its long-term fundamentals have not changed. On the other hand, the rising momentum of US inflation has slowed down. Recently, the US dollar index has dropped to a certain extent, and the market's expectations for the future have changed, which is conducive to maintaining the RMB exchange rate at a reasonable and balanced level; China's domestic production still has advantages, and the trade in goods is expected to maintain a reasonable surplus; International investors are optimistic about China's development prospects, and the northward capital shows a net inflow trend as a whole. All these will help promote the basic balance between supply and demand in the foreign exchange market and stabilize the scale of China's foreign exchange reserves. (Xinhua News Agency)