FXStreet (Guatemala) – Analysts at UOB explained that Bloomberg reported that China’s capital outflows jumped in December, with the estimated 2015 total reaching US$1 trillion, a record since data was collected from 2006.
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“The total for the 2015 was also more than seven times of the US$134.3 billion in the whole of 2014. In December, outflows increased to US$158.7 billion, the second-highest monthly outflow of the year after September’s US$194.3 billion.
December’s outflows increased by almost US$50 billion from a month earlier, highlighting the scale of the battle facing policy makers trying to hold up the RMB amid slower economic growth and slumping stocks, forcing them to burn through foreign reserves to reduce RMB volatility.
In addition to capital exiting the economy, exporters are holding funds in dollars instead of converting them to RMB.”
(Market News Provided by FXstreet)