China’s cen­tral bank con­tin­ues forex sales

China Daily (Canada) - - BUSINESS -

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.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.