Capital outflows may crimp forex reserves

Nation's foreign exchange holdings drop by $36.6b from January to April

China's $3.12 trillion foreign exchange reserve may further decline under the pressure of capital outflows, said experts, predicting a stronger US dollar supported by the Fed's possible interest rate hike in June.

The nation's foreign exchange reserves, which were used as a currency defense when the yuan suffered strong depreciation pressure two years ago, has dropped $36.6 billion from January to April, after 12 months of growth since February 2017, according to data from the central bank.