Yuan funds for forex drop in December

Advanced Search

The story appears on

Page A10

January 17, 2017

GET this page in PDF

Free for subscribers

View shopping cart

Yuan funds for forex drop in December

Source: Xinhua | January 17, 2017, Tuesday |

Print Edition

THE central bank’s yuan funds outstanding for foreign exchange declined again in December as capital outflow continued.

The funds declined 317.8 billion yuan (US$46.1 billion) in December month on month to 21.94 trillion yuan, data from the People’s Bank of China showed Monday. December was the 14th consecutive month of decline.

As the Chinese currency 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 an important indicator of cross-border foreign capital flow and domestic yuan liquidity. China’s forex reserves fell for the sixth straight month in December by US$41.1 billion to US$3.01 trillion, as the PBOC used them to balance the forex market and currencies weakened against the US dollar. Despite recent drops, China is still home to the world’s largest forex reserve.

Finance

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

Yuan funds for forex drop in December

Email this to your friend