Economics
China Seen Losing Another $300 Billion in FX Reserves This Year
- $3 trillion seen as critical threshold for market sentiment
- If a crisis erupts, reserves may be 'burned down quickly'
China Burns Through FX Reserves
This article is for subscribers only.
China’s foreign-exchange reserves are seen tumbling $300 billion this year to a level near what some analysts say risks undermining confidence in the central bank’s ability to defend the currency.
Ten out of 12 economists in a Bloomberg survey last week forecast reserves will drop to $3 trillion or less by the end of this year, and the median estimate is for that same amount. The holdings are projected to tumble further, to $2.66 trillion by the end of next year, the lowest since 2010.