China’s yuan funding for foreign exchange has increased up to 21.9 trillion yuan. Compared to last year, the new loans have surpassed the anticipated amount and increased by 11%.
Friday, November 17– China’s outstanding yuan funds for foreign exchange have marked a second consecutive monthly increase, reaching 21.9 trillion yuan (approximately 3.05 trillion U.S. dollars) by the end of October, as per official data from the People’s Bank of China. This surge, totaling 90.7 billion yuan from September, serves as a crucial gauge for cross-border foreign capital flows and domestic yuan liquidity.
China’s foreign exchange reserves recorded 3.1012 trillion U.S. dollars by October’s end, reflecting a decrease of 13.8 billion dollars compared to September, according to the State Administration of Foreign Exchange.
The October new yuan loans saw a figure of ¥738.4 billion, surpassing the anticipated ¥665.0 billion. This follows a notable increase in new loans at the close of Q3, with the October reading, although slightly lower, still surpassing the same period last year. This resilience in new loans, up by approximately 11% compared to October 2022, underscores China’s ongoing efforts to support its economy.
China’s increase in yuan funds for forex indicates a stable cross-border capital flow and liquidity within the country. Despite a minor decrease in new loans in October, the figures have recovered highlighting China’s efforts to support its economy. In the coming years, keeping a close eye on these indicators will provide valuable insights into the path of China’s economy, and its determination to foster economic well-being.