Beijing, September 7

China’s foreign exchange reserves fell by a record $93.9 billion last month, the government said today, as Beijing sold dollars to support its own currency following jitters over a sudden devaluation.

The currency hoard declined by $93.9 billion to reach $3.56 trillion at the end of August, the State Administration of Foreign Exchange (SAFE) said on its website, showing the cost of China’s efforts to prop up yuan.

August was the fourth consecutive month reserves fell, according to SAFE data, and their lowest level since August 2013. In previous years, China’s government bought dollars to slow the appreciation of yuan. But the foreign currency reserves remain by far the world’s largest.

Meanwhile, China today lowered last year’s economic growth figure to 7.3 per cent after concerns about slowing expansion caused global market havoc, but said its own stock exchanges are stabilising following ‘bubbles’ and painful corrections.