China's forex reserves hit lowest level since 2011

China’s foreign exchange reserves dropped more than expected in August, hitting the lowest level since December 2011, indicating that capital outflow pressures remain a concern, according to the South China Morning Post. The forex reserves stood at US$3.185 trillion at the end of last month, down US$15.89 billion from the end of July, according to data released by the People’s Bank of China on Wednesday. The market consensus was for a US$11 billion decline. The reserves fell US$4.1 billion in July. “The data showed capital outflow pressure remained on expectation of further yuan depreciation,” said Liu Jian, a senior researcher at the Bank of Communications. “A faster depreciation of the yuan in late August may quicken the outflow.”