SHANGHAI/SINGAPORE, Oct 23 (Reuters) - Capital outflows from China rose sharply to $75 billion in September, the biggest such monthly amount since 201
SHANGHAI/SINGAPORE, Oct 23 (Reuters) – Capital outflows
from China rose sharply to $75 billion in September, the biggest
such monthly amount since 2016, Goldman Sachs’ preferred gauge
of foreign exchange flows showed, underscoring intensifying
depreciation pressure on the yuan.
The trend was also evident in official Chinese data over the
weekend with big outflows under banks’ forex sales and
settlement business and through cross-border payment.
September’s outflows, nearly 80% higher than the $42 billion
seen in August, were driven by current account outflows as
foreign investors’ net selling of equities and bonds slowed,
Goldman Sachs said in a report.
There was $35 billion in net outflows via onshore outright
spot transactions last month, as well as $45 billion of net yuan
payment from onshore to offshore, the Wall Street bank said.
Despite rising yuan deprecation pressure, Goldman said it is
sticking to its year-end yuan forecast of 7.30 per dollar,
citing Beijing’s efforts to limit the Chinese currency’s
decline.
“Policymakers appear to put more weight on confidence and
stability in FX management,” Goldman said.
The yuan is one of the worst performing
currencies in Asia this year, having dropped more than 5.5%
against the dollar.
Big outflows were also captured by official data.
China in September witnessed $19.4 billion of outflows under
forex sales and settlement business for customers, the largest
monthly outflows since late 2016, State Administration of
Foreign Exchange (SAFE) data showed on Friday.
Moreover, monthly cross-border receipts and payments
recorded a deficit of $53.9 billion, the biggest since February,
2016.
(Reporting by Samuel Shen and Tom Westbrook
Editing by Shri Navaratnam)
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