China's foreign exchange reserves fell more than expected in September to a 14-month low as the yuan currency weakened further against the dollar amid mounting trade tension with the United States. Reserves fell $22.69 billion in September to $3.087 trillion, the biggest drop since February, compared with a decline of $8.23 billion in August, central bank data showed on Sunday.
Economists polled by Reuters had expected reserves to drop by $5 billion to $3.105 trillion. The yuan fell for the sixth straight month in September as the dollar remained buoyant, suggesting Beijing may be in no rush to intervene because a weaker currency would support its exporters amid the escalating Sino-US trade war.
The United States and China imposed fresh tariffs on each other's goods last month. Foreign exchange rate fluctuations and asset price changes contributed to the decline in reserves, China's foreign exchange regulator said in a statement.
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