US$93b net forex buying
By Feng Jianmin |
March 5, 2013, Tuesday
|
Print Edition
Print Edition
BANKS in China bought a net US$92.6 billion in foreign exchange, more than expected, in January, indicating strong capital inflow and easy liquidity in the near term.
The net amount Chinese banks bought using the yuan in over-the-counter transactions was an increase from US$54.3 billion in December, data from the State Administration of Foreign Exchange showed.
"The data point to an unusually large market demand for the yuan," said Dariusz Kowalczyk, senior economist at Credit Agricole. "This explains ample yuan liquidity onshore in the first several weeks of the year as well as recent central bank's liquidity- draining operations."
In the week ending February 22, the People's Bank of China drained a record-high net 910 billion yuan (US$146 billion) via open market operations.
But Kowalczyk said the PBOC may not aggressively tighten monetary policies, and the yuan may appreciate again on strong market demand once the yen and the euro stabilize against the US dollar.
The net amount Chinese banks bought using the yuan in over-the-counter transactions was an increase from US$54.3 billion in December, data from the State Administration of Foreign Exchange showed.
"The data point to an unusually large market demand for the yuan," said Dariusz Kowalczyk, senior economist at Credit Agricole. "This explains ample yuan liquidity onshore in the first several weeks of the year as well as recent central bank's liquidity- draining operations."
In the week ending February 22, the People's Bank of China drained a record-high net 910 billion yuan (US$146 billion) via open market operations.
But Kowalczyk said the PBOC may not aggressively tighten monetary policies, and the yuan may appreciate again on strong market demand once the yen and the euro stabilize against the US dollar.
- 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.
