China’s foreign exchange reserves fall more than expected to US$3 trillion
September figures show sharper than forecast drop as yuan continues to depreciate against the dollar
China’s foreign exchange reserves fell more than expected in September to a 14-month low as the yuan weakened further against the dollar amid mounting trade tension with the United States.
Reserves fell US$22.69 billion in September to US$3.09 trillion, the biggest drop since February, compared with a decline of US$8.23 billion in August, central bank data showed on Sunday.
Economists polled by Reuters had expected reserves to drop by US$5 billion to US$3.1 trillion.
The yuan fell for the sixth straight month in September as the dollar remained buoyant, suggesting Beijing may be in no rush to intervene because a weaker currency would support its exporters amid the escalating trade war with the US.
The United States and China imposed fresh tariffs on each other’s goods last month.
Foreign exchange rate fluctuations and asset price changes contributed to the decline in reserves, China’s foreign exchange regulator said in a statement.