Economics

China FX Reserves Slip to Four-Year Low on Strong Greenback

  • Holdings dropped $28 billion to $3.19 trillion in May
  • Drop due to valuation effect of stronger dollar: CBA’s Li Wei
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China’s foreign-exchange reserves slipped to the lowest level since late 2011 as a rallying dollar ate into the value of its holdings.

The world’s largest currency hoard fell by $28 billion to $3.19 trillion in May, the People’s Bank of China said in a statement Tuesday. That was almost in line with the $3.2 trillion median forecast of economists surveyed by Bloomberg.