Forex reserves decline by $42.5 billion in July

Capital outflows surge as worries about weak economic growth increase, says central bank

China's foreign exchange reserves slipped to a two-year low by the end of July, the People's Bank of China, the central bank, said on Friday, implying more capital outflows amid expectations of a fragile economic rebound and a stronger dollar.

The nation's reserves dropped to $3.65 trillion last month, down by $42.5 billion from the level in June, the sharpest monthly decline since March, according to PBOC data.