The State Administration of Foreign Exchange (SAFE) dismissed concerns about massive amounts of capital moving out of the country, stressing risks are “generally within control.” Chinese banks sold a net USD164.4 billion worth of foreign exchange in the fourth quarter of 2015, down from USD196.1 billion in the third quarter. China’s foreign exchange reserves posted the sharpest monthly fall on record in December, falling to USD3.33 trillion, the lowest level in more than three years. Despite the continuing drop, China’s foreign exchange reserves remain sufficient to guard against external shocks, SAFE reiterated. SAFE pledged to step up monitoring and analysis of cross-border capital flows to prevent potential risks. SAFE also said it has not issued new measures to restrain foreign exchange purchases or sales, though currency traders and banks have reported a number of such steps by authorities in recent months to control cross-border flows and crack down on speculation in the yuan currency. SAFE Spokeswoman Wang Chunying said that the FED’s increase of the interest rate accelerated capital outflows from China and other emerging economies, “but we are better prepared than some emerging countries to resist external shocks”, she added. Economists expected the capital outflows to continue in 2016.