China Forex Reserves Fall By $320 Bln In 2016
BEIJING, Jan 7 (UrduPoint / Pakistan Point News - 07th Jan, 2017 ) - China's foreign exchange reserves fell by $320 billion last year, Beijing announced Saturday, as authorities sought to support the Yuan against a soaring Dollar which is encouraging capital outflows.
In December the forex reserves dropped by $41 billion from the previous month, SAFE said, which would make it their sixth consecutive monthly decline according to figures from the central People's Bank of China.
The yuan is now trading at its lowest level in eight years against the dollar after dropping about seven percent in the space of a year, as Beijing sells greenbacks to support its Currency. At the same time, a persistently sluggish domestic economy is encouraging a flight of funds in search of more remunerative investments abroad.
Aware of the danger, China has tightened its measures to stop the outflow of capital, in particular by restricting many investments abroad considered doubtful.