The People's Bank of China (PBOC), the central bank, recorded a negative monthly growth in its position for foreign-exchange purchase for an eighth consecutive month in September, but the decline has narrowed as compared with those in previous two months.
Data from the PBOC showed on Friday that PBOC's yuan position for foreign-exchange purchase totaled 25.82 trillion yuan at the end of September, down from 26.09 trillion yuan at the end of August.
According to Xinhua's calculations based on PBOC data, the central bank sold a net value of 264.14 billion yuan worth of foreign currencies last month, the lowest level in three months, indicating that capital outflow is decelerating.
Because the yuan is not fully convertible at present, China's central bank has to buy foreign-currency inflows generated by foreign investment or trade surplus from commercial banks in the interbank market, resulting in an injection of yuan funds into the banking system.
Latest comments