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Sunday, November 25, 2018, 15:57
China's yuan funds outstanding for foreign exchange drop in Oct
By Xinhua
Sunday, November 25, 2018, 15:57 By Xinhua

An employee counts Chinese one-hundred yuan banknotes at the Bank of China Hong Kong Ltd headquarters in Hong Kong. (PHOTO / VCG)

BEIJING - China's yuan funds outstanding for foreign exchange continued to drop in October, central bank's data showed.

The funds stood at 21.3168 trillion yuan (about US$3.1 trillion) at the end of October, down from 21.4084 trillion yuan a month earlier, according to the People's Bank of China (PBOC).

As the Chinese currency is not freely convertible under the capital account, the central bank has to purchase foreign currency generated by a trade surplus and foreign investment in the country, adding funds to the money market.

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Such funds are an important indicator of cross-border foreign capital flows and domestic yuan liquidity.

As a similar measure of capital flows, China's foreign exchange reserves stood at 3.053 trillion dollars last month, down 33.9 billion dollars from a month earlier, PBOC data showed.

READ MORE: China's major securities brokers report US$897b in asset value

The State Administration of Foreign Exchange said despite the intricate international situation and growing uncertainty in the global market, the Chinese economy has maintained its stability and operated within a reasonable range so far this year.

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