China capital outflows jump - UOB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Analysts at UOB explained that Bloomberg reported that China’s capital outflows jumped in December, with the estimated 2015 total reaching US$1 trillion, a record since data was collected from 2006.

    Key Quotes:

    "The total for the 2015 was also more than seven times of the US$134.3 billion in the whole of 2014. In December, outflows increased to US$158.7 billion, the second-highest monthly outflow of the year after September’s US$194.3 billion.

    December’s outflows increased by almost US$50 billion from a month earlier, highlighting the scale of the battle facing policy makers trying to hold up the RMB amid slower economic growth and slumping stocks, forcing them to burn through foreign reserves to reduce RMB volatility.

    In addition to capital exiting the economy, exporters are holding funds in dollars instead of converting them to RMB."
    For more information, read our latest forex news.

Share This Page

free forex signals