PBOC’s yuan funds for forex fall again
Print Edition
THE Chinese central bank’s yuan funds outstanding for foreign exchange fell again in November, burdened by lingering capital outflow pressures amid a weakening yuan against the US dollar.
The funds shed 382.7 billion yuan (US$55.44 billion) month on month to 22.26 trillion yuan, data from the People’s Bank of China showed yesterday.
It is the largest monthly drop this year and marks the 13th consecutive month of decline.
As the yuan is not freely convertible under the capital account, the central bank has to purchase foreign currency generated by China’s trade surplus and foreign investment in the country, adding funds to the money market.
Such funds are a vital sign of cross-border foreign fund flows and domestic yuan liquidity.
Concerns about capital outflows had been rising as the economy slowed, possibility of a US rate hike loomed and the yuan had fallen since China revamped its forex mechanism last year
China’s forex reserves, another sign of capital outflow, fell for the fifth straight month in November to US$3.05 trillion, down US$69.1 billion from October.
The State Administration of Foreign Exchange has dismissed the huge capital outflows.
- 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.
