The People's Bank of China said Tuesday that its intervention in the forex market was one of the reasons for the fall in China's foreign exchange reserves and any future fluctuations would be "normal."
China's foreign exchange reserves tumbled 94 billion US dollars in August. That's the largest monthly fall on record. China's forex reserves are the world's largest and now stand at 3.6 trillion U.S. dollar.
The central bank says the fall in reserves was also due to currency fluctuations because the value of assets denominated in other currencies are determined in US dollars according to the exchange rate.
