Economics
China’s FX Reserves Decline Amid Yuan Support, Weaker Euro
- Stockpile has dropped by more than $400 billion this year
- PBOC has been intervening to prop up the yuan amid SDR push
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China’s foreign-exchange reserves declined last month to the lowest level since February 2013 as the central bank sold dollars to prop up the local currency ahead of approval from the IMF for the yuan to be included in its basket of reserve currencies.
The currency hoard dropped by $87.2 billion to $3.44 trillion at the end of November, from $3.53 trillion a month earlier, according to People’s Bank of China data released Monday, extending this year’s decline to $405 billion. The median forecast of economists surveyed by Bloomberg was $3.49 trillion. Declines in the euro, yen and British pound last month may have also weighed on the U.S. dollar value of reserves.