Capital outflow from China for the month reached $36.7 billion. This is the highest number since December 2016.
Capital outflow from China worsened in April this year to the highest level since December 2016. Chinese banks sold $36.7 billion to their clients last month, Bloomberg wrote.
It was noted that this underscored the poor conditions for the yuan amid a weak domestic economy and uncertainty over the US Federal Reserve’s interest rate.
In April, Chinese companies bought the most foreign currency from banks since 2016, as exporters stopped converting dollars and residents bought foreign currency for travel abroad.
These factors point to a cautious outlook for the yuan, as China’s relatively low interest rates, compared to the US, help strengthen the dollar. And while the People’s Bank of China has intervened to keep the yuan within a narrow range, uncertainty about the timing and extent of the Fed’s rate cuts this year is making its job more difficult.
As reported, due to sanctions against Chinese companies that want to enter the EU, the state of China’s economy may worsen. Correspondent.net I wondered how this would affect relations between the Celestial Empire and the Russian Federation, the course of the war in Ukraine and the world situation as a whole.
Source: korrespondent
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