OEF Rapid Review Articles
As China’s foreign exchange reserves threaten to tumble below the critical $3 trillion mark, there are fears that it will set off a vicious cycle of more outflows and currency depreciation. China has stepped into both its onshore and offshore yuan markets to shore up the yuan, but if forex reserves continue to be depleted at a fast pace and capital flight continues, some strategists believe China may have to sanction another big “one-off” devaluation that could set off competitive currency devaluations by other struggling emerging economies.
LINK TO THE SOURCE ARTICLE:
China Burning Through Forex Reserves To Support Yuan
