China's March forex reserves fall more than expected to 17-month low

China's foreign exchange reserves fell more than expected in March to a 17-month low as the yuan weakened and global asset prices plunged amid the coronavirus pandemic.
The country's reserves - the world's largest - fell $46.085 billion in March to $3.061 trillion, central bank data showed on Tuesday.
Economists polled by Reuters had expected reserves would fall by $6.718 billion to $3.100 trillion.
The fall was due to changes in prices of financial assets that China holds, such as foreign bonds, and fluctuations in exchange rates, the foreign exchange regulator said in a statement after the data release.
Strict capital controls have largely helped China keep outflows under control over the past year despite the shock from the virus outbreak and tough containment measures, a prolonged trade war with the United States and weakening economic growth.
But March saw sharp price drops and wild volatility on global financial markets as the virus spread quickly around the world, creating economic chaos. Outflows from China stocks hit $12.3 billion for the month as investors scrambled for safety, the Institute of International Finance (IIF) said. However, there were signs of a strong reversal and a jump in inflows late in the month as China brought the outbreak under control and businesses and factories began reopening after a two-month lockdown.
The yuan fell 1.27% against the dollar in March, while the dollar rose about 0.89% in March against a basket of other major currencies as investors looked for havens.
China burned through $1 trillion of reserves supporting the yuan in the last economic downturn in 2015, which also saw it devalue the currency in a surprise move.