China’s foreign exchange reserves, the largest in the world, posted the sharpest monthly fall in over three years in December at $3.33 trillion, official data reported on Thursday. The fall in December extended a month-on-month decline of $87.2 billion dollars registered in November. Foreign exchange reserves fell to $3.33 trillion at the end of last month, the lowest level in more than three years and down by $108 billion from November, the People’s Bank of China said.
The yuan has been heading south since the central bank revamped the foreign exchange mechanism in August to make the rate more market-based.