BEIJING — China's foreign exchange reserves shrank to $3.2107 trillion at the end of January, official data showed on Feb 7.

The amount fell by $5.9 billion, or 0.2 percent, from the end of last year, according to the State Administration of Foreign Exchange (SAFE).

In January, China's forex market functioned smoothly with market expectations and transactions remaining stable, said SAFE spokesperson Wang Chunying.

Due to the development of the COVID-19 vaccine and the monetary and financial policies of major economies, the dollar index saw an increase while prices of financial assets in major countries fell last month, Wang added.

The spokesperson attributed the decline in forex reserves to the combined effects of currency translation and changes in asset prices.

Wang, however, expects the scale of China's forex reserves to remain generally stable, despite uncertainties in the international financial market amid virus-induced risks and a feeble global economic recovery.