China’s foreign exchange reserves dropped by $28bn in May, falling to their lowest level since the end of December 2011, according to the Financial Times. Overall reserves dropped to $3.191tn in May, according to new data from the People’s Bank of China, from $3.219tn in April. Analysts had expected a reading of $3.2tn. Concerns over China’s war chest have emerged over the past year as Beijing has sold dollars to support its falling currency and stem capital outflows. Policymakers have been forced to dip into reserves following the central bank’s announcement of a new exchange-rate fixing regime in August, which sent tremors across global markets at the prospect of a new round of global currency wars.