Capital exit concerns dismissed
Print Edition
CHINA’S foreign exchange regulator yesterday dismissed concerns about massive amounts of capital moving out of the country, stressing risks from the flows are “generally within control.”
The State Administration of Foreign Exchange cited China’s continued current account surplus and the world’s largest foreign exchange reserves as solid support for the country to secure the balance of international payments.
“The impacts of capital outflows on domestic liquidity and financial operations are controllable,” SAFE said.
Chinese banks sold a net US$164.4 billion worth of foreign exchange in the fourth quarter of 2015, down from US$196.1 billion in the third quarter, according to data from SAFE.
Concerns about capital outflows have been exacerbated as the yuan had been heading south since the central bank revamped the foreign exchange mechanism in August to make the rate more market-based.
China’s foreign exchange reserves posted the sharpest monthly fall on record in December, falling to US$3.33 trillion, the lowest level in more than three years.
Despite the continuing drop, China’s foreign exchange reserves remain ample enough to guard against external shocks, SAFE reiterated.
“The fluctuation of foreign exchange reserves is normal given the complex domestic and external economic and financial environment,” it said.
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.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
