I don’t think this data got coverage here, so noting it
A fall of $45.7 billion to $3.12 trillion for October
– expected $3132.5bn
– prior $3166.4bn
– The high for reserves was $4tln back in June of 2014
The stronger USD has been prompting flows out of China (i.e. out of yuan), and this continued in October. The concern the authoritides have in China is capital outflows continues and accelerates. The drop in reserves in October, while more than forecasts, are not at an overly concerning pace, so expect vigilance from the PBOC but no panic yet. They will likely continue to limit the pace of yuan devaluation (which requires selling USD against the currency to ‘buy’ yuan).