China's Foreign Exchange Reserves on Decline

China experienced the fastest loss of reserves in 5 years. China's foreign exchange reserves fell by $68 billion in April alone.

China's Foreign Exchange Reserves on Decline. As part of the fight against inflation, global central banks increased the interest rates aggressively and gave messages that the tightening efforts would continue. Unlike the central banks of other countries, China has decided to continue its easing policy. This led to a serious decline in foreign exchange reserves. China's foreign exchange reserves fell by $68 billion in April alone to $3.12 trillion, according to official data. The expectation of economists participating in the Bloomberg survey was that reserves would decline to 3.13 trillion. The fall in the country's foreign exchange reserves in April was recorded as the sharpest drop since November 2016. In its statement on reserves, the relevant institution stated that the main factor behind the 2 percent decline in April was valuations. In April, the yuan depreciated by 4 percent against the dollar, while the dollar increased by up to 5 percent against other major global currencies.