China’s Foreign Reserves Fell by 13B in January

China’s foreign exchange reserves have fallen to a six-year low following an outflow of capital that prompted Beijing to tighten controls on outbound investment.

Central bank data Tuesday showed reserves declined by about $13 billion in January to $2.99 trillion but still are by far the world’s biggest. It was the seventh straight month of decline.

The Chinese central bank has been spending foreign currency to shore up the value of the yuan. Chinese investors also are eroding the reserves by moving money abroad.

That prompted Beijing to tighten controls on the ability of companies and individuals to move money out of the country.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza