(Yicai Global) April 10 -- China's foreign exchange reserves climbed 1.6 percent in March to USD3.18 trillion from February amid rising values of assets such as bonds and major world currencies other than the US dollar.

China has a solid economic foundation with a promising outlook, which contributes to its stable reserves of assets held in foreign currencies by the central bank, the State Administration of Foreign Exchange announced on its website recently.

The nation's rising reserves of government securities such as bonds and deposits were caused by several factors, according to Zhao Qingming, vice president of the China Forex Investment Research Institute. First, the US dollar Index dropped over 2 percent last month, which prompted an appreciation of assets denominated in other currencies. Moreover, prices of bonds and stocks in major economies were increasing while China's capital flows remained balanced, Zhao added.

Going forward, the international financial market has increasing uncertainties as the global situation is perplexing and the world lacks momentum for recovery, according to Wen Bin, chief economist at China Minsheng Bank. Still, China seeks steady growth and strengthens its inner power for development, Wen said, adding that the country can stabilize its foreign exchange reserves by balancing international payments and by operating the foreign exchange market smoothly.

Editor: Emmi Laine, Xiao Yi