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7 months ago
UPDATE 1-China commercial banks' net FX sales rise to highest since March
December 16, 2016 / 9:34 AM / 7 months ago

UPDATE 1-China commercial banks' net FX sales rise to highest since March

3 Min Read

* Banks' net FX sales $33.4 bln in Nov vs $14.6 bln in Oct
    * Jan-Nov net forex sales at $291.4 bln
    * Yuan falls to new 8-1/2-year low, set to lose 1 pct this
week
    * Nov outflows rose from Oct on expectations of U.S rate
hike

 (Adds details)
    BEIJING, Dec 16 (Reuters) - Chinese banks' net sales of
foreign exchange in November rose to their highest since March
as capital outflows increased amid concerns over a steadily
declining yuan in the face of a strong dollar. 
    Commercial bank's net sales of foreign exchange totalled
$33.4 billion in November, up from $14.6 billion in October, the
foreign exchange regulator said on Friday.
    For the January to November period, net forex sales stood at
$291.4 billion, the State Administration of Foreign Exchange
(SAFE) said in a statement on its website.
    The yuan weakened past 6.95 per dollar on Friday
to its weakest level since May 2008, with falls accelerating
after the U.S. Federal Reserve raised interest rates on
Wednesday. 
    China's cross-border capital flows were largely stable in
November, despite relatively big changes in the external
environment, the country's foreign exchange regulator said on
Friday. 
    November capital outflows increased from October due to
expectations the Fed would raise rates and a strong dollar, SAFE
said.
    China's foreign exchange reserves fell by $69.06 billion in
November to its lowest in nearly six years, as the authorities
struggled to stem capital outflows and shore up the sliding
yuan. 
    The central bank sold a net $55.4 billion worth of foreign
exchange in November, the highest since January, as the
authorities stepped up efforts to shore up the weakening yuan,
according to data released on Wednesday. 
    Beijing has been trying to stem the flow of capital abroad
with a string of measures aimed at closing loopholes and
clamping down on illegal transfers, but pressure is growing as
the yuan accelerates its decline against the dollar.
    

 (Reporting by Beijing Monitoring Desk and Elias Glenn; Editing
by Jacqueline Wong)

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