Advisors urge calm on forex decline

China's diminishing forex reserve, now below the closely watched $3 trillion mark, has triggered market concerns, but two advisors to the nation's central bank believe that such worries are overblown.

The decline does not warrant such worries, and was indeed a good thing, according to Fan Gang, a Chinese economist and member of the monetary policy committee of the People's Bank of China, the central bank.

China's forex reserve dipped to about $2.998 trillion in January, down from about $3.01 trillion in December 2016, representing the seventh consecutive monthly contraction, State Administration of Foreign Exchange data showed recently.