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

Brunilde Fioravanti
Dicembre 8, 2017

Prior to market opening on Thursday, the People's Bank of China (PBOC) set the midpoint lower for the ninth straight trading day to 6.6195 per dollar, 32 pips or 0.05 per cent weaker than the previous fix of 6.6163 - the longest weakening streak since mid-November.

Economists polled by Reuters had expected reserves to rise by $11 billion to $3.120 trillion.

Foreign exchange reserves suggest that capital outflows continued to be a non-issue last month, Julian Evans-Pritchard, an economist at Capital Economics, said.

There had been concerns over capital flowing out of China in the second half of 2016, when the economy was under pressure and the yuan was in the middle of a losing streak against the US dollar.

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.

Looking ahead, the regulator said the Chinese economy is in an increasingly firm condition to maintain the good momentum, while further reform in interest rates and foreign exchange markets will lay a more solid foundation for the country's forex reserves to keep stable.

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