China gets control of its currency

Friday, 8 December 2017

Via Capital Economics:

 China’s foreign exchange reserves suggest that capital outflows continued to be a non-issue last month. This has allowed the PBOC to step back from FX intervention which, over the medium term, should be supportive of renminbi appreciation.

 The value of the reserves amounted to $3,119bn at the end of November, up $10bn from a month earlier (the Bloomberg median was $3,124bn and our forecast was $3,105bn). (See Chart 1.)

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.