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China’s holdings of U.S. Treasuries slip to lowest level since November 2012

According to U.S. Treasury Department data released Tuesday, China’s holdings of U.S. Treasuries fell to $1.19 trillion in bonds, notes and bills in August, down $33.7 billion from the prior month.

It was the biggest drop since 2013 and brought China’s holdings of U.S. Treasuries fell to the lowest level since November 2012. Data was just another indication which reiterated China's China’s efforts to support the yuan. The world’s second-largest economy draws down its foreign reserves to prop up the yuan.

China sold an estimated $570 billion in foreign-exchange assets from August 2015 to August 2016 in an effort to keep the currency from plunging, according to an estimate by the U.S. Treasury released last week.

China’s foreign-exchange reserves dropped $19 billion in September to the lowest level since 2011. The drop extended the $16 billion fall to $3.19 trillion in August. China’s foreign-exchange reserves extend declines from a peak of close to $4 trillion in 2014.

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