China’s foreign exchange reserves fell to $3.4 trillion at the end of September 2026, down $38.1 billion from a month earlier. The decline was attributed to a negative valuation effect, with a stronger US dollar and surging US Treasury yields likely reducing the value of China’s reserves. Meanwhile, the People’s Bank of China increased its gold holdings to 77.47 million fine troy ounces from 76.73 million ounces at the end of August, extending its gold-buying streak to nearly two years.