China’s Forex Reserves Fall by Record $93.9 Billion on Yuan Intervention

One of the world’s largest piles of cash is rapidly shrinking. In another sign of a new normal for the Chinese economy, and the world, China’s central bank on Monday said its foreign-currency reserves fell a record $93.9 billion in August, a month when it intervened intensely in the currency market to prop up the yuan. The drop underlined the shifting role for a stockpile of money that had steadily accumulated since the mid-1990s as China bought dollars and other currencies from its exporters and one that had turned China into a gargantuan investor in U.S. Treasurys. At $3.56 trillion as of the end of August, the currency reserves held by the People’s Bank of China still account for nearly a third of all holdings by central banks world-wide, but the reserves have declined since a peak of nearly $4 trillion in June 2014 as more money leaves the country. To read the full article (VIEW LINK)