February China's foreign reserves return to $3.4 trillion, with a slight increase in gold holdings by 30,000 ounces

[Caixin] Influenced by exchange rates and other factors, China’s foreign exchange reserves have rebounded to $3.4 trillion, while continuing to modestly increase gold holdings by 30,000 ounces.

On March 7, the State Administration of Foreign Exchange released the latest official reserve data, showing that as of the end of February 2026, China’s foreign exchange reserves were $3.4278 trillion, up $28.7 billion from the end of January, a 0.85% increase.

The Foreign Exchange Bureau explained that the increase in reserves for the month was mainly due to “the combined effects of exchange rate conversion and asset price changes.”

Since foreign exchange reserves are valued in US dollars, a decline in the dollar results in an increase in the converted reserve data. In February 2026, the dollar initially declined then rebounded, fluctuating around 96 to 97. Overall, the US dollar index appreciated slightly by 0.5% that month but did not return to the 100 mark.

Regarding asset prices, the bond market experienced mixed movements, but US long-term bonds rose driven by risk aversion and recession concerns, with yields falling significantly. In February, the yield on the 10-year US Treasury bond dropped from 4.25% to 3.96%, a decline of over 6%. Since bond prices are fixed at face value, the decline in yields means bond prices increased.