“Forex reserves are valuable assets that [China] can use at critical times. It’s a pity that they are being sold heavily in the market. It should be the last resort.”
The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.