China’s foreign-exchange reserves fell to the lowest level in nearly six years last month, testing the central bank’s resolve to control the weakening yuan’s descent to a pace it dictates. The People’s Bank of China said Saturday that the world’s largest stockpile of foreign currency plunged by $41.08 billion in December to $3.011 trillion, the lowest level since March 2011. The decline was smaller than the previous month’s drop of $69.06 billion and fell largely in line with analysts’ expectations. The more limited drop underscored the central bank’s willingness to dip into reserves to buy up yuan, and use capital controls and other tools to try to prop up the currency and restrain businesses and individuals rushing to send money offshore . China’s foreign-exchange regulator, an arm of the central bank, said efforts to stabilize the yuan are the main reason for the drop in the reserves. Other factors, […]