Persistent Outflows, Unusual Foreign Deposit Inflows

China’s recently released balance of payments data show a sudden accumulation of $31.6 billion in foreign exchange reserves in Q2, but other series indicate persistent international payments deficits and informal capital outflows. The most surprising element was the return of a capital and financial account surplus for the first time in three years, led by a sudden increase in non-residents’ deposits in Chinese banks.

Posted August 16, 2017
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