China October forex reserves drop most for nine months
In October, China's foreign exchange reserves dipped the most for nine months and by far more than expected to the lowest value since March 2011, thus indicating further capital outflows notwithstanding recent indications that the world's second-largest economy is currently stabilizing.
The previous month reserves edged down $45.7 billion to $3.121 trillion, the biggest monthly sag since January, compared with an almost $19 billion tumble in September, as major bank data revealed on Monday.
The October dip turned to be the fourth in a row, and surpassed the previous three months combined.
Financial experts surveyed by Reuters had expected reserves to drop to $3.14 trillion in October from $3.166 trillion by the end of September, a five-year minimum.
The major bank is believed to have sold American dollars to back the Yuan currency in October as it dived to six-year minimums.
In September, the PBOC had sold a net 337.5 billion Yuan worth of foreign exchange, as it sought to back the dropping Yuan as outflows picked up.