China’s foreign-exchange reserves fell to the lowest level in nearly six years last month, testing the central bank’s resolve to control the yuan’s descent to a pace it dictates, according to The Wall Street Journal. The People’s Bank of China said Saturday that the world’s largest stockpile of foreign currency fell $41.08 billion in December to $3.011 trillion, the lowest level since March 2011. The decline was smaller than the previous month’s drop of $69.06 billion and was largely in line with analysts’ expectations. The drop underscored the central bank’s willingness to dip into reserves to buy up yuan and use capital controls and other tools to try to prop up the currency and restrain businesses and individuals rushing to send money offshore.
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