Yuan Defense Costs: Reserves Fall $34 Billion in October

China's forex reserves declined $34 billion in October, the largest decline since December 2016. Reserves in SDRs declined $35 billion. Reserves fell the $3.053 trillion.

Breaking USDCNY 7 will also break $3 trillion in reserves. Quickly thereafter, reserves will be below $2.9 trillion and the cost of defending the yuan will start rising rapidly along with depreciation expectations. Markets are whistling past a global financial panic.