Data from the Chinese central bank points to a decelerating decline in funds outstanding for foreign exchange in November.
Funds outstanding for foreign exchange stood at 21.259709 trillion yuan as of the end of November following an update of the monetary authority’s balance sheet according to the official news outlet of the People’s Bank of China (PBOC), for an on-month decline of 57.13 billion yuan.
September and October saw declines of 119.4 billion yuan and 91.6 billion yuan respectively compared to their preceding month.
E Yongjian (鄂永健), chief financial analyst with Bank of Communications, said that November saw sizeable volatility in the US dollar index and a marked reduction in depreciation pressure for the renminbi, which serve as the main reasons for decelerating declines in China’s funds outstanding for foreign exchange.
Looking ahead, E said that there is not much likelihood of accelerated declines in funds outstanding for foreign exchange given the expectation of corrections to the renminbi exchange rate.