(Yicai Global) Oct. 17 -- Chinese cut its holdings of United States Treasuries for the third straight month in August to take them to a more than one-year low, an indication it is looking to support the yuan as it slides against the dollar.
American Treasuries' biggest holder cut its horde by USD5.9 billion to USD1.17 trillion, the lowest since June 2017, according to US Treasury Department data published yesterday. Japan, the US's second-largest creditor, also cut its holdings by USD5.6 billion.
In total, foreign creditors held USD35.4 billion more than the prior month and USD37.6 billion more than 12 months earlier, the data shows.
According to data from the People's Bank of China, the country has cut its foreign exchange reserves by nearly USD31 billion over the past two months as it looks to prevent the yuan from waning further.
The central bank has reduced the central parity rate of the yuan against the dollar by more than 6 percent so far this year while the world's two largest economies have locked horns in trade, reigniting claims from US President Donald Trump that the nation is intentionally manipulating its currency.
PBOC sets the benchmark on the morning of each business day, allowing spot rates to deviate 2 percent above or below the figure.