They have burned through almost $1Tn in 2 yrs buying Yuan ...China's foreign exchange reserves unexpectedly fell below the closely watched US$3 trillion (S$4.22 trillion) level in January for the first time in nearly six years, even as authorities tried to curb outflows by tightening capital controls.
Reserves fell by US$12.3 billion in January to US$2.998 trillion, compared with a drop of US$41 billion drop in December.
While the US$3 trillion mark is not seen as a firm "line in the sand" for Beijing, concerns are swirling in global financial markets over the speed at which the country is depleting its ammunition to defend the currency and staunch capital outflows.
