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14:44, 18-Jul-2017
China's yuan-denominated funds for foreign exchange edge lower in June
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China's central bank's outstanding yuan funds for foreign exchange continued to fall in June, representing the 20th straight month of decline.
The funds shrank by 34.32 billion yuan (around 5.05 billion US dollars) from May to 21.5 trillion yuan, data from the People's Bank of China showed on Monday.
The decrease was more than the drop of 29.33 billion yuan registered in May.
VCG Photo
VCG Photo
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 inbound foreign investment, adding funds to the money market.
Such funds are an important indicator of cross-border foreign capital flows and domestic yuan liquidity. A decrease of the funds often signals higher capital flight pressure.
(Source: Xinhua)
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