The funds outstanding for foreign exchange is the amount of yuan that Chinese banks have to put into the domestic market to purchase foreign exchange from individuals and institutional clients. It is an indicator of cross border capital flows for the domestic Chinese market.
China’s financial institutions saw their yuan funds outstanding for foreign exchange increase 130.68 billion yuan (20.71 billion U.S. dollars) in September after two months of falls, data from the central bank showed Friday.
The funds have been shrinking since July as a result of slowing foreign trade and dropping foreign direct investment amid global economic woes, according to figures from the People’s Bank of China.
via Xinhua
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