Global Foreign Reserves Fall Sharply

Global foreign reserves fall sharply; RMB devaluation; India's economic growth rate revised downwards

1.Global foreign exchange reserves are falling at the fastest rate ever as central banks from India to the Czech Republic intervene to support their currencies. World foreign exchange reserves fell by about US$1 trillion (7.8%) to US$12 trillion this year, the biggest drop since the data began to be compiled.

| Foreign Exchange Division Comment: Part of the decline was caused by changes in currency valuations.

2.China and European central banks renew bilateral local currency swap agreement

Recently, the People's Bank of China and the European Central Bank renewed their bilateral local currency swap agreement, with the size of the swap remaining unchanged at RMB 350 billion/€45 billion and the agreement valid for three years. The renewed agreement will help further deepen financial cooperation between the two sides, promote bilateral trade and investment facilitation and maintain financial market stability.

| Commentary by the Department of Foreign Affairs: We expect more customers to pay in RMB.

3.Recently, the World Bank lowered India's economic growth rate from 7.5% to 6.5% for the fiscal year 2022-2023, which is the third time the World Bank revised India's economic growth forecast. The main reason for this is the spillover effect of the Russia-Ukraine conflict and the tightening of global monetary policy dragging down India's economic outlook.

| Foreign Land Division Comment: These days, it's true that plans can't keep up with change.