According to a research report released by Goldman Sachs, the People's Bank of China (PBOC) liquidated $1.1 trillion worth of foreign currency reserves since August previous year. This amount more than doubles the $540 billion figure reported by the PBOC for the period between August 2015 and November 2016.

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Goldman Sachs computed the figures using data released by the State Authority on Foreign Exchange. The team said, "Since June, this data has continued to suggest significantly larger [foreign exchange] sales by the PBOC than is implied by FX reserve data [the gap is about $25 billion a month on average in the last several months]."

Goldman Sachs has also issued a warning that the yuan may be headed for recording its steepest decline in more than 20 years. China saw $69.2 billion worth of currency exodus in November, while the average rate since June hovered around $50 billion a month.

The State Administration of Foreign Exchange reported that an equivalent of $33.6 billion exited China through yuan payments in November, up from $29 billion figure in October. This marks the consecutive 14th month in a row for a net outflow of capital through payments in yuan.

China's foreign exchange showed its declined to $555 billion in November. The domestic currency also indicated signs of weakness as last week's yuan plunged to its lowest level in over eight years. It is likely that the currency will end the year approximate 6.5 percent lower and will mark the biggest annual decline in the currency value since 1994.

Chinese authorities are taking several steps including close monitoring of outward fund transfers to curb the flow of the capital out of the country. 

TagsGoldman sachs, people's bank of china, State Authority on Foreign Exchange