FX.co ★ China Foreign Exchange Reserves Slump Most in 10 Years

China’s foreign exchange reserves, as reported by the People’s Bank of China, declined by $85.7 billion in March 2026 from the previous month to $3.342 trillion, marking the sharpest monthly drop in a decade. The decrease coincided with a strong rally in the US dollar after the outbreak of war in the Middle East at the beginning of the month, which prompted global investors to move into dollar assets. This dollar strength weighed on the dollar value of US Treasuries, gold, and other foreign exchange holdings. The value of the PBoC’s gold reserves fell to $343 billion, even though the central bank increased its gold holdings in tonnage terms during the period.