China Nov FX Reserves Rise for 10th Month as Outflow Risks Ebb

Postado Dezembro 08, 2017

This marks an increase of more than 10 billion dollars from a month earlier, according to the People's Bank of China.

It was the first time that China's reserves have climbed for 10 months in a row since June 2014, and brought its stockpile - the world's largest - to the highest since October previous year. The dollar tumbled 1.6 percent against major trading currencies in November.

The yuan rose slightly against the dollar in November, making it a almost 5% increase so far this year.

Market watchers see a yuan level of 7 against the dollar, as a key touchstone for sentiment in the near term.

A trader at a foreign bank in Shanghai said the yuan was very steady in morning trade, with some uncertainty about the outlook next year keeping traders on the sidelines.

On Monday, Chinese financial news outlet Yicai quoted Pan Gongsheng, head of the State Administration of Foreign Exchange, as saying that China has "basically exited" from curbs on firms' irrational outbound investment deals.

Beijing's tightened rules on moving money out of the country have helped limit capital outflows this year. Economists polled by The Wall Street Journal had expected a rise of $13 billion.