China’s foreign exchange reserves take a big drop
“China’s foreign exchange reserves fell by USD 33.93 billion to USD 3.053 trillion in October of 2018, below market expectations of USD 3.06 trillion. It is the lowest value since April of 2017 and the biggest monthly decline in forex reserves since December of 2016 amid a further drop of the yuan, suggesting the central bank has been intervening to avoid further decreases in the currency. Meanwhile, the value of gold reserves increased to USD 71.968 billion at the end of October, from USD 70.327 billion at the end of September. Foreign Exchange Reserves in China averaged 995876.03 USD Million from 1980 until 2018, reaching an all time high of 3993212.72 USD Million in June of 2014 and a record low of 2262 USD Million in December of 1980.” [Emphasis added.]
USAGOLD note: Whether or not China defends the yuan has been an issue for the gold market of late, so this hard evidence of a defense is worth noting. The mentioned increase in nominal value in its gold reserves looks like a revaluation due to higher gold prices over the past three months, not an increase in the overall weight.