China Reserves Fall in July as PBOC Steadies Yuan Amid Outflows
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China’s foreign-exchange reserves fell for a third month as the central bank kept the yuan steady against the dollar amid capital outflows and plunging stocks.
The reserves declined by $43 billion in July to $3.65 trillion, the least since August 2013, the People’s Bank of China said Friday. The holdings, which are more than triple the size of any other country’s, shrank in each of the last four quarters as the central bank bought yuan to stabilize the exchange rate. The currency’s closing levels in Shanghai this week have matched the tightest range recorded since a greenback peg ended a decade ago.