Yuan funds outstanding for foreign exchange surge in September

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Yuan funds outstanding for foreign exchange surge in September

(Xinhua) 20:21, October 29, 2013

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The Chinese central bank's new yuan funds outstanding for foreign exchange totaled 268.2 billion yuan (43.7 billion U.S. dollars) in September, an increase of almost 170 billion yuan from one month ago, the latest data showed.

The figure also exceeded new funds outstanding for foreign exchange of financial institutions, which stood at 126.36 billion in September, according to data released Tuesday by the People's Bank of China (PBOC), the country's central bank.

The funds are an important indicator for foreign capital flow in and out of China as well as yuan liquidity at home. The amount of the funds denominated in yuan is a measure of foreign exchange purchases made by both the central bank and commercial banks.

The PBOC releases two sets of data on a monthly basis on yuan funds for foreign exchange by differentiating forex purchases by the central bank and commercial banks.

Tuesday's data indicates only forex purchases by the central bank on the nation's inter-bank foreign exchange market.

Analysts said the stabilization of China's economy was a major reason for the increase. The economy expanded by 7.8 percent in the third quarter, up from 7.5 percent in the second.

Sun Wei, vice-general manager of the China CITIC Bank's financial market department, said an export rebound since the third quarter and the U.S. Federal Reserve's delayed tapering of its bond-buying program have led to a rapid inflow of foreign capital into China, which caused forex-triggered yuan funds to climb as well as a growth in yuan liquidity.

Customs data also showed that in the first nine months of the year, exports and imports grew 7.7 percent from a year earlier, with the trade surplus growing 14.4 percent year on year to 169.4 billion U.S. dollars.

（Editor：DuMingming、Zhang Qian）