Strong Dollar Hits China’s Foreign-Exchange Reserves

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Wall Street Journal  | Wed, Nov 7, 2018

by Grace Zhu and Liyan Qi

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China’s foreign-exchange reserves saw its biggest monthly drop in October in nearly two years, hit by a strong U.S. dollar that hurt the value of other holdings and likely prompted government intervention to shore up the yuan.

October’s decrease of $33.93 billion was the largest since December 2016 when Beijing was battling capital flight and burned through $1 trillion to defend the yuan.

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