Beijing: In the background of the ongoing upheavals in China’s economy, there has been a significant decline in the country’s foreign reserves. China’s foreign reserves fell to $3.029 trillion in September. It is being said that there has been a decrease of about one per cent in the foreign reserves in one month. A few days ago, reports were released that the Central Bank of China had instructed Chinese banks to sell US dollars in the international market.
Moreover, China’s economy has been rocked by the ‘Zero Covid Policy’ and wrong economic policies. A few days ago, the World Bank predicted that China’s economy has slowed down due to the ‘Zero Covid Policy’ and China’s growth rate will be only 2.8 per cent in the current financial year. In an earlier report, the World Bank had claimed that China’s growth rate would remain at five per cent. US analysts also claimed that unemployment in China has increased by about 20 per cent and the challenges facing China’s economy have increased due to the tightening of fuel prices due to the war in Ukraine.
According to the information provided by China’s State Administration of Foreign Exchange, China’s foreign reserves at the end of August were 3.055 trillion dollars. It decreased by almost 26 billion dollars in September. The strengthening of the US dollar is believed to be the main reason behind this. 
China’s gold reserves also fell from $107 billion to $104 billion. The State Administration of Foreign Exchange also said that the process of restoring China’s economy is still going on.
Last month, the US central bank, the Federal Reserve, raised its interest rate by 0.75 per cent to strengthen the dollar. The value of China’s Yuan has since fallen to an 11-year low. In such a situation, China started selling a large amount of dollars to improve the position of the Yuan. China’s Central Bank has suggested selling dollars in its treasury and banks affiliated with the communist regime. However, how many dollars the Chinese Communist regime will sell is unknown. But it is claimed that dollars in Chinese banks in Hong Kong, New York and London will be sold.
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