The Blubber

Per Reuters

In April, it was reported that China had reached a whopping $3.205 trillion, and although this didn't beat its previous record, this was still considered a significant high for its reserves. The figure beats previous estimations and comes as the dollar is struggling.

It was reported that the dollar started to fall against some other major currencies and that China's forex reserves reached $3.205 trillion. This came after a significant $21 billion increase last month.

The estimate by analysts was that China's foreign exchange reserves would increase to $3.192 trillion. In March, the country's forex reserves sat at just $3.184 trillion.

Compared to the dollar, in April, the yuan saw a slight drop of 0.63%. However, the dollar also fell significantly compared to other major currencies, seeing a 0.94% drop.

It was also noted that in April, China also grew its holdings of fine troy gold ounces. The countries' fine troy ounces of gold reached 66.76 million by the end of April from its previous end-of-March numbers of 66.50 million ounces.

At the end of March, China's gold reserve had a value of $131.65 but grew by almost a billion to $132.35 billion at the end of April.

China has been dealing with other countries to ditch the dollar regarding trading. It recently entered a deal with Brazil for the two countries to use their own currencies when trading instead of the US dollar.

China remains the biggest trading partner of Brazil, with a record $150.5 billion in bilateral trade in 2022.

Recently, the Chinese yuan has surpassed the US dollar as the most commonly used currency for the country's cross-border transactions. This saw the currency reaching a record high of $549.9 billion in March, an increase from $434.5 billion just a month before.

See flow at unusualwhales.com/flow.

Other News:

• China and Brazil have reached a deal to trade in their own currencies, ditching the US dollar as an intermediary
• The Chinese yuan surpassed the US dollar as the most commonly used currency for cross-border transactions in China

Resources:

Reuters