China’s economy still in doubt

The People’s Bank of China has been selling Dollars as a way to mitigate the damage caused by the falling Yuan and that has taken China’s foreign reserves to their lowest level since 2012. According to some reports by the PBOC, its reserves have shrunk by about 99 billion Dollars. The drop in China’s reserves have been more than what most analysts and economists were expecting. This has brought up some questions as to how long will it take for the Chinese economy to get back in track. That is why for this upcoming week there could be more risk aversion in the markets and we could probably see safe-haven instruments like the Yen rally along with gold and government bonds.