1st forex quarterly decrease in decade

Drop reflects outflow of foreign capital amid global economic woe

BEIJING / HONG KONG - China's foreign exchange reserves declined on a quarterly basis for the first time in more than a decade, a sign analysts said underpins the need for the country to shore up market liquidity.

The world's largest holdings of foreign wealth fell to $3.18 trillion at the end of last year from $3.2 trillion at the end of September, according to data released on Friday by the People's Bank of China, the central bank.