Forex reserves dropped by $425 billion in July
China’s foreign exchange reserves slipped to a two-year low by the end of July, the People’s Bank of China (PBOC), the central bank, said, implying more capital outflows amid expectations of a fragile economic rebound and a stronger dollar.
The nation’s reserves dropped to $3.65 trillion last month, down by $42.5 billion from June, the sharpest monthly decline since March, according to PBOC data.
July’s decrease marks the third consecutive month that the forex reserves have fallen. It has dropped by $343 billion from a historic high of $3.99 trillion in June 2014.