China’s forex reserves fall to near six-year low
The world’s second-largest economy still has the largest stash of forex reserves by far, but it has burned through more than half a trillion dollars since August 2015
Beijing — China’s foreign exchange reserves unexpectedly fell below the closely watched $3-trillion level in January for the first time in nearly six years, though tighter regulatory controls appeared to making some progress in slowing capital outflows. China has taken a raft of steps in recent months to make it harder to move money out of the country and to reassert a grip on its faltering currency, even as US President Donald Trump steps up accusations that Beijing is keeping the yuan too cheap. Reserves fell $12.3bn in January to $2.998-trillion, more than the $10.5bn independent economists had expected. While the $3-trillion mark is not seen as a firm "line in the sand" for Beijing, concerns are swirling over the speed at which the country is depleting its ammunition, sowing doubts over how much longer authorities can afford to defend the currency and its reserves. Some analysts fear a heavy and sustained drain on reserves could prompt Beijing to devalue the yuan as it did in 20...
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