China’s foreign exchange reserves increased in March, supported by a weaker U.S. dollar that lifted the value of the country’s non-dollar assets, though the gains fell short of market expectations. According to the People’s Bank of China, reserves rose by $13.44 billion to reach $3.241 trillion by the end of the month.

Economists surveyed by The Wall Street Journal had anticipated a larger increase, projecting reserves to climb to $3.252 trillion. The shortfall suggests either more limited capital inflows or valuation adjustments from foreign currency assets that were less supportive than expected.

In parallel, China’s gold holdings also expanded, as the central bank extended its gold-buying spree for a fifth month in a row. Total holdings reached 73.7 million fine troy ounces, up slightly from 73.61 million ounces in February.

The value of China’s gold reserves jumped sharply to $229.6 billion in March, compared with $208.64 billion a month earlier. This increase reflects not just greater volumes but also rising global gold prices amid ongoing geopolitical and economic uncertainty.

The latest data underscores Beijing’s strategy of diversifying reserves away from the U.S. dollar and into tangible assets like gold, as tensions with Washington persist and concerns grow over global financial volatility.