China's SAFE: Fall in Forex Reserves Due to Yuan Stabilization Efforts
China's foreign exchange reserves fell for a sixth straight month in December to their lowest level since 2011, as the central bank attempts to shore up the yuan, the country's foreign exchange regulator said on Saturday.
Reserves at the People's Bank of China shrunk by $41 billion to $3.011 trillion in December, edging closer to what traders believe is a psychological "comfort level" of $3 trillion.
In total, the country's holdings fell nearly $320 billion in 2016.
"The central bank's efforts to stabilize the yuan exchange rate were the major reason for the decline in foreign exchange reserves last year,” said the State Administration of Foreign Exchange (SAFE) on its website. The depreciation of non-U.S. dollar currencies in the basket also had an impact on the reduction.
On Jan. 4, the yuan fell to its weakest level against the dollar in eight and a half years.
Contact reporter Chen Na (firstname.lastname@example.org)
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