Banks Bled FX in September

The $43 billion drop in FX reserves last month understated the outflows.

Reuters: China FX sales hit high in September as outflows pressure yuan
China's central bank and commercial banks sold a record net 761.3 billion yuan ($119.85 billion) of foreign exchange in September, data showed on Friday, as capital outflows weighed on the yuan after its surprise devaluation the previous month.

The September figure surpassed the net 723.8 billion yuan sold in August, according to Reuters calculations based on central bank data.
The total figure was larger than August, but since the yuan didn't devalue until a third of the month was gone, the intensity did subside.

Still, banks absorbed the blow.

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