Chinese Foreign Reserves Are Falling
Now Ryan Avent does the same, and provides us with this chart of how different emerging market currencies have performed against the U.S. dollar in a period when the yuan has appreciated in value somewhat against the U.S. dollar.
reduced its foreign exchange reserves.
This isn't proof that the yuan is valued higher than it would have been with a floating exchange rate, but Paul Krugman and many other pundits have asserted that increased foreign exchange reserves proves that the yuan is undervalued. By their logic, the yuan is actually overvalued now.