Beijing - China's foreign exchange reserves stood at 3.4003 trillion U.S. dollars at the end of September 2026, down 38.1 billion dollars, or 1.11 percent, from the end of August, data from the State Administration of Foreign Exchange (SAFE) showed Wednesday.

Last month, the U.S. dollar index rose while prices of major global financial assets generally declined, amid changes in the global macroeconomic environment and monetary policies in major economies, the SAFE noted in a statement.

The combined effects of exchange-rate movements and changes in asset prices led to the decline in China's foreign exchange reserves during the month, the SAFE said.

Wen Bin, chief economist at China Minsheng Bank, said the decline came against a backdrop of rising expectations for tighter U.S. monetary policy.

The U.S. Federal Reserve raised its benchmark overnight interest rate by 25 basis points in September to a range of 3.75 percent to 4 percent, its first rate increase of the year. The Fed's latest dot plot pointed to another rate hike by the end of the year, while hawkish remarks from Fed officials further strengthened market expectations for additional tightening, Wen said.

Against this backdrop, global bonds, including U.S. Treasuries, came under selling pressure, pushing yields higher and lifting the U.S. dollar index. The stronger dollar and declines in the prices of some global financial assets in turn exerted valuation pressure on China's foreign exchange reserves.

Despite the decline, the administration said China's economy has remained generally stable, with stronger new growth drivers, an improving economic structure and continued progress in high-quality development, providing support for the country's foreign exchange reserves to remain broadly stable.

Wen said China's exports are expected to remain resilient and continue to serve as a key anchor for the country's balance of payments.

Wednesday's data also showed China's gold reserves stood at 77.47 million ounces at the end of September, up 740,000 ounces from the end of August.

The increase marked the 23rd consecutive month that the People's Bank of China had added to its gold holdings.