China Foreign Reserves Head for Record Drop on Yuan
- $513 billion plunge in 2015 was first annual slide since 1992
- DBS: 'The speed of reserves depletion will likely accelerate'
Why China Reporting Reserves Is a Big Deal
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China’s foreign-exchange reserves, already at a three-year low, are poised to post a second consecutive record monthly drop as policy makers intervene to support the yuan.
The central bank will say Sunday that the currency hoard fell by $118 billion to $3.2 trillion in January, according to economists’ estimates in a Bloomberg survey. That would exceed a record $108 billion decline in December, which brought last year’s total draw-down to more than half a trillion dollars and capped the first annual decrease in the reserves since 1992.