BEIJING -- China's foreign exchange reserves climbed to $3.1041 trillion by the end of July, up $32.8 billion from June, data from the State Administration of Foreign Exchange showed on Sunday.

"Supply and demand in the domestic foreign exchange market remained balanced," deputy administration head Wang Chunying said, commenting on the data.

Wang attributed the increase in forex reserves to the increase in the dollar index and financial asset prices globally.

Deeming the external situation to be complex and grim, Wang said the global financial market still faces uncertainties amid increasing risks and challenges in the global economy.

But China's economic fundamentals for long-term growth have remained unchanged thanks to its efforts in coordinating COVID-19 prevention and control with economic and social development, which will keep the country's forex reserves stable, Wang said.