China’s 2016 foreign exchange reserves fall by $320 bn

BEIJING: China’s foreign exchange reserves fell by $320 billion last year, Beijing announced on Saturday, as authorities sought to support the yuan against a soaring dollar which is encouraging capital outflows. The country’s vast foreign exchange reserves, the largest in the world, slipped to $3.011 trillion at the end of December, the State Administration of Foreign Exchange (SAFE) said on its website. In December the forex reserves dropped by $41 billion from the previous month, SAFE said, which would make it their sixth consecutive monthly decline according to figures from the central People’s Bank of China. Reserves had slipped by $46 billion in October and nearly $70 billion in November, falling to levels last seen more than five years ago. “The central bank’s efforts to stabilise the yuan are the main reason why the reserves have fallen,” last year, said an official of the State Administration of Foreign Exchange. — AFP