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Forex sales blues
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CHINA’S central bank continued to see net foreign exchange sales in October as a weakening yuan raised capital flight pressure, data showed yesterday.
The People’s Bank of China said its yuan funds outstanding for foreign exchange fell 267.9 billion yuan (US$39 billion) in October to 22.6 trillion yuan.
It was a milder drop than the 337.5 billion yuan fall in September but marked the 12th straight month of declines.
China’s foreign exchange reserves shrank for a fourth straight month to US$3.12 trillion in October, the lowest level since March 2011.
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