Cross-posted from Investing in Chinese Stocks.
The pace of yuan depreciation and reserve decline are both slowing. So far the PBoC is successful, but the PBoC has to be successful all the time because the trend is still against it.
Bloomberg: China Reserves at Lowest Since 2011 as PBOC Supports Yuan
Outflows were probably concentrated in the last week of August as the yuan depreciated against the dollar, and policy makers will likely continue with measures to clamp down on capital outflows, said Donna Kwok, a senior China economist at UBS Group AG in Hong Kong.
“Outflow pressures are here to stay as domestic entities and households continue to diversify further into foreign assets, either for higher returns abroad, diversification desires or renminbi depreciation expectations,” Kwok said.
