12.10.2016 - Goldman Sachs warns China’s currency outflows may be worse than they look
China’s currency outflows may be bigger than they look, with Goldman Sachs warning that a rising amount of capital is exiting the country in yuan rather than in dollars. While the nation’s foreign-exchange reserves have stabilised and lenders’ net foreign-exchange purchases for clients have fallen close to a one-year low, official data show that US$27.7 billion in yuan payments left China in August. That’s compared with a monthly average of $4.4 billion in the five years through 2014. Such large cross-border moves can’t be explained by market-driven factors and need to be taken into account when measuring currency outflows, according to MK Tang, Hong Kong-based senior China economist at Goldman Sachs..............................................Full Article: Source
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