China’s central bank continues forex sales
China’s central bank saw its yuan funds outstanding for foreign exchange drop 227.9 billion yuan ($30.06 billion) to 23.98 trillion yuan in February, data showed. The fall narrowed from the 644.5 billion drop in January and a record plunge of 708.2 billion yuan in December. Through 2015, the funds only rose in January and October. 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 by commercial banks, adding funds to the money market.