China’s central bank will announce its foreign exchange reserves figures later this week, and analysts at Barclays think they may have a shock in store for investors.

Barclays analysts, led by David Fernandez in Singapore, estimate China is burning through its reserves faster than ever to pump liquidity into its financial system and prop up its currency.

Here’s the quote (emphasis ours)

Our analysis of the central bank’s liquidity operations implies that China’s FX reserves could have dropped by up to USD140bn (USD130bn after valuation adjustments) to around USD3.19trn in January.

If correct, this would be the biggest monthly drop in FX reserves on read more >>>

Source : BusinessInsider.Com