Source: Xinhua| 2021-01-0720:41:42|Editor: huaxia

BEIJING, Jan. 7 (Xinhua) -- China's foreign exchangereserves expanded to 3.2165 trillion U.S. dollars at the end of December, asthe country's forex market remained generally stable, official data showedThursday.

The amount was up by 38 billion dollars, or 1.2 percent,from the end of November, according to the State Administration of ForeignExchange (SAFE).

The December figure was a new high since May 2016,according to Wen Bin, chief analyst at China Minsheng Bank.

Commenting on the December rise, SAFE spokesperson WangChunying said the market was "basically stable" with orderly andrational transactions.

Due to development of the COVID-19 vaccine and themonetary and financial policies of major economies, the dollar index saw adecline while non-U.S. dollar currencies went up in December, said Wang.

The spokesperson attributed the December growth in forexreserves to the combined effects of currency translation and changes in assetprices.

For the whole of 2020, eight months logged month-on-monthgrowth, indicating that the steady functioning of the country's forex markethad a solid foundation, said Wen.

Wang also expected China's foreign exchange market to runin a steady and balanced manner and the scale of forex reserve to remaingenerally stable, despite uncertainties in the international financial marketamid virus-induced risks and complicated global economic outlook.