China may finally have stopped running out of money

Chinese foreign exchange reserves
finally stopped its slide in March, increasing by $10 billion to $3.212 trillion.
China’s FX reserves peaked at about $4 trillion (£2.7 trillion) in the middle of 2014, but since then the country has burned through about $800 billion of its foreign cash.

Reserves had fallen for four consecutive months until March, and have dropped more than $600 billion in the last year alone, but that slide may be finally be over, even though the rise is pretty tiny, representing growth of just 0.3%.

The number was a beat on the expectations of economists, who had predicted a further fall — $6 billion — from February’s number.

China’s FX reserves have been the subject of lots of worry in recent years. In February, notoriously pessimistic economist Albert Edwards warned that the country is running out of money and will have to float the renminbi as a free currency.

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