China's foreign exchange reserves have fallen to a six-year low following outflows of capital that prompted Beijing to tighten controls on outbound investment. Reserves declined by about $13 billion in January to $2.99 trillion but still are by far the world's biggest, central bank data showed Tuesday. The People's Bank bases the yuan's state-set exchange rate on a basket of currencies that is believed to be dominated by the dollar. The data suggest capital outflows last month were about $45 billion, down from December's $61 billion, according to Julian Evans-Pritchard of Capital Economics. "But for now at least, the jitters surrounding capital outflows late last year have subsided."

Source: ABC News February 07, 2017 09:50 UTC