According to data released by the State Administration of Foreign Exchange on August 7th, as of the end of July 2025, China's foreign exchange reserves amounted to 3292.2 billion US dollars, a decrease of 25.2 billion US dollars or 0.76% from the end of June. The State Administration of Foreign Exchange stated that in July, influenced by macroeconomic data, monetary policies, and expectations of major economies, the US dollar index rose, and global financial asset prices fluctuated. The combined effect of exchange rate conversion and asset price changes resulted in a decrease in the scale of foreign exchange reserves for the month. According to different standards, China's foreign exchange reserves, which are slightly over 3 trillion US dollars, are currently at a moderately abundant level. ”Wang Qing, Chief Macro Analyst of Dongfang Jincheng, stated that a moderately abundant scale of foreign exchange reserves will provide important support for maintaining the RMB exchange rate at a reasonable and balanced level, and can also serve as a ballast to resist various potential external shocks. The State Administration of Foreign Exchange stated that China's economic foundation is stable, with multiple advantages, strong resilience, and great potential. The long-term positive support conditions and basic trends have not changed, which is conducive to maintaining the basic stability of foreign exchange reserves. Wen Bin, Chief Economist of Minsheng Bank, stated that the domestic economy is currently operating steadily with the support of macro policies, and will continue to maintain a stable and positive trend in the future, laying a solid foundation for maintaining overall balance of international payments and basic stability in foreign exchange reserves. On the same day, the State Administration of Foreign Exchange released data showing that China's gold reserves at the end of July were 73.96 million ounces, an increase of 60000 ounces compared to the previous month, marking the 9th consecutive month of China's central bank increasing its holdings of gold. Wang Qing stated that gold is widely accepted as the ultimate means of payment globally, and increasing the holdings of gold by the People's Bank of China can enhance the credibility of sovereign currencies and create favorable conditions for steadily promoting the internationalization of the renminbi. From the perspective of optimizing the international reserve structure and steadily advancing the internationalization of the renminbi, the future direction for China's central bank to increase its holdings of gold remains the main direction. In the long run, gold still has advantages in terms of hedging, inflation resistance, and long-term preservation and appreciation. Therefore, the central bank of our country's promotion of international reserve diversification, the addition and dynamic adjustment of gold reserves in portfolio allocation, and the strategic direction of continuously increasing gold holdings will not change. ”Pang Ming, a specially appointed senior researcher at the National Finance and Development Laboratory, said. (New Society)