OREANDA-NEWS China's foreign exchange reserves, the largest in the world, increased by 0.6 percent in March to $3.246 trillion, despite expectations that they would decrease to $3.21 trillion. This is according to Interfax, citing the authorities of the country.

Against the backdrop of the depreciation of the yuan against the US dollar, which amounted to almost 0.5 percent in a month, China's reserves in the first quarter were the highest since December 2021. Additionally, the value of the country's gold reserves increased by more than $12 billion over the month.

In February, China's foreign reserves increased by 0.2 percent, also against the backdrop of a depreciating yuan and contrary to analysts' predictions of a decrease in reserves.Earlier, the Russian Central Bank described the current situation as "systematic undervaluation" of the yuan compared to the dollar. This is because key suppliers of foreign exchange liquidity on the market mainly sell yuan and euros, while main buyers (importers and individuals) create demand not only for these currencies but also for dollars.