China’s Foreign Exchange Reserves Decline by $44 Billion in August

China’s foreign exchange reserves witnessed a decrease in August, dropping from $3.204 trillion in July to $3.16 trillion, reflecting a substantial decline of $44.2 billion.

It’s important to note that this reduction does not signify an aggressive depletion of reserves in defense of the yuan currency. Beijing possesses alternative mechanisms to exercise control over capital flows and actions of major state-owned banks. Nevertheless, with foreign exchange reserves totaling $3.16 trillion, China continues to hold the world’s largest forex reserves, a figure nearly three times greater than that of Japan, which ranks second globally.