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China’s yuan funds outstanding for foreign exchange fall in November

Updated: Dec 18,2018 9:40 AM     Xinhua

BEIJING — China’s yuan funds outstanding for foreign exchange continued to decline in November, central bank’s data showed.

The funds stood at 21.26 trillion yuan (about $3.09 trillion) at the end of last month, down from 21.32 trillion yuan in October, according to the People’s Bank of China on Dec 17.

As the Chinese currency — the yuan — is not freely convertible under the capital account, the central bank has to purchase foreign currency generated by a trade surplus and foreign investment in the country, adding funds to the money market.

Such funds are an important indicator of cross-border foreign capital flows and domestic yuan liquidity.

A similar measure of capital flows, the foreign exchange reserves edged up to $3.0617 trillion in November after dropping for three consecutive months.

“China’s international balance of payments largely remained stable in November,” said Wang Chunying, spokesperson of the State Administration of Foreign Exchange.