Cross-border capital flows to stay stable in 2018
China's cross-border capital flows are expected to remain stable this year given the relative positive external environment and strong economic fundamentals, a senior official with the nation's top foreign exchange regulator said on Thursday.
The country's cross-border capital flows are not likely to be affected much by the impact of expected US Federal Reserve interest rate hikes this year, after data shows the market did not overreact to Fed's move in the past year, according to State Administration of Foreign Exchange spokesperson Wang Chunying.
The dollar index fell by 9.9 percent in 2017, during which time major emerging market currencies appreciated against the dollar.
"Last year marks a turning point for China's cross-border flows," she said, referring to improved data of forex reserve and notably eased outflow pressure in 2017.
Forex reserves increased by $129.4 billion year-on-year in 2017, compared to $319.8 billion valued decline in 2016, according to SAFE.
She said the market holds better expectations for yuan's exchange rate.
"We found enterprises and individuals now purchase and sell the currency as they need, and irrational behaviors such as moving out the money of the country in search of stronger returns have been curbed," she said.
