China’s foreign-exchange reserves fell by US$40 billion to US$3.69 trillion in the second quarter following a record US$113 billion drop in the first three months of 2015, Bloomberg reported, citing figures from the People’s Bank of China. The yuan’s 0.05% loss against the dollar over the past year is the smallest of those in emerging markets. “The amount of capital fleeing China declined in the second quarter as the yuan remained stable,” said Banny Lam, co-head of research at Agricultural Bank of China International Securities. “The yuan faces mild depreciation pressures in the short-run as the economy is recovering at a slow pace, but that won’t cause serious capital outflows.”
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