China foreign-currency reserves slip by $23 bn on trade tensions, yuan

Holdings to generally stay stable despite some changes: SAFE

China’s foreign-currency holdings fell in September, as heightened trade tensions with the U.S. fueled concerns of capital outflow and further yuan depreciation.

Reserves declined by $22.69 billion to $3.087 trillion in September, the People’s Bank of China said Sunday. That compares with $3.110 trillion the previous month and the median estimate of $3.105 trillion in a Bloomberg survey of economists.

The small drop in reserves was due to changes in the value of foreign currencies and asset prices, the State Administration of Foreign Exchange (SAFE) said in a statement, adding that the holdings will generally remain stable despite some fluctuations.

The nation’s reserve