Investing.com - China’s foreign exchange reserves posted the largest drop on record last month as the central bank intervened to prop up the yuan after an unexpected devaluation of the currency in early August.
The country’s foreign reserves shrank by around $93 billion last month, according to data published on the website of the People’s Bank of China after Chinese stock markets closed on Monday.
In July China's reserves only fell by $42 billion.
Beijing sold dollars to support the yuan and stem capital flight after China devalued its currency on August 11.
The unexpected devaluation of the yuan sparked fears that Beijing would permit more weakening of the currency to help spur growth and triggered a heavy selloff in Chinese equities and sharp drops global financial markets.
Over the weekend G20 finance ministers and central bankers said they backed last month’s yuan devaluation, saying the move was a step towards a more market-determined exchange rate.
China’s central bank governor Zhou Xiaochuan said Saturday that the correction in China’s stock market is “almost done.” He also indicated that markets should stabilize, after weeks of turbulence.