China’s foreign exchange reserves stood at $3.416 trillion at the end of June 2026, down from May’s more-than-decade high of $3.442 trillion and below market expectations of $3.44 trillion. The decline came as the US dollar strengthened 2.3% against a basket of major currencies—its largest monthly gain since July 2025—driven by expectations of a Federal Reserve rate hike later this year.
Meanwhile, the People’s Bank of China extended its gold-buying campaign for a 20th consecutive month. Gold holdings rose to 75.44 million fine troy ounces at the end of June from 74.96 million in May. Despite the increase in volume, the market value of these gold reserves fell to $303.72 billion from $340.75 billion.
