Competing theories explain drop in China’s reserves

The Great Wall of China

The increasing reluctance of China's exporters to exchange foreign earnings, coupled with the People's Bank of China's (PBoC) determination to support the value of the renminbi, could be behind the drop in the country's foreign exchange reserves, observers have suggested.

China's forex reserves – the world's largest – fell by $110 billion to $3.73 trillion in the first four months of the year on a quarterly basis, according to the State Administration of Foreign Exchange (SAFE).

This is the thir

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