(Yicai Global) Feb. 8 -- China’s foreign exchange reserves rose for the fourth consecutive month in January, according to the latest data.

China’s forex reserves came to USD3.1845 trillion at the end of last month, up 1.8 percent or USD56.8 billion from December, the State Administration of Foreign Exchange said yesterday.

Affected by global economic indicators and expectations for monetary policy in major economies, the US dollar index fell 1.4 percent to 102.1, strengthening non-US dollar currencies, the foreign exchange regulator noted.

The value of global financial assets rose overall. The Barclays Global Aggregate Total Return Index USD Hedged jumped 2.3 percent, and the Standard & Poor’s 500 Index surged 6.2 percent.

The US dollar index has begun to peak, and exchange rate factors have lifted China’s forex reserves, Shanghai Securities News yesterday cited Guan Tao, chief global economist at BOC International China, as saying. The impact of uncertainties on asset prices in the international financial market still needs attention, he added.

“The bond market can still rise, but expectations for a shift in global central bank monetary policies are too optimistic,” Guan added. “Risk assets have not yet been adequately priced into the global economic downturn.”

The external environment is complex, the risk of stagflation in the global economy is rising, and the international financial market is still facing great volatility, according to Wen Bin, chief economist at China Minsheng Bank.

Despite that, the Chinese economy is steadily recovering, with its internal driving force growing stronger, while the overall balance of international payments and the stable operation of the foreign exchange market will keep the nation’s reserves generally stable, Wen said.

China’s gold reserves rose for the third straight month in January, climbing by 480,000 ounces from the previous month to 65.12 million oz, according to data released by the People’s Bank of China.

Editor: Futura Costaglione