China's forex reserves fell by roughly $44 billion in August

<p>The country's foreign exchange reserves fell to $3.16 trillion in August, down from $3.204 trillion in July – indicative of a $44.2 billion fall.</p><p>Needless to say, they're not really burning through reserves to defend the yuan currency. That considering Beijing has alternative means to maintain control over flows and actions by major state-owned banks as well. In any case, at $3.16 trillion, they're still comfortably holding the world's largest forex reserves – nearly three times more than Japan which is the second-largest.</p>

This article was written by Justin Low at www.forexlive.com.