China’s Surging Dollar Deposits Show Yuan Concern, Barclays Says
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January’s jump in foreign-currency deposits in China reflects mounting expectations that the yuan will weaken further, according to Barclays Plc.
The holdings climbed $45.2 billion in January to $655.7 billion, the U.K. lender said in a March 6 research note. That compared with a $108.4 billion gain for the whole of last year. The yuan has retreated 1 percent against the dollar since Dec. 31, after falling 2.4 percent in 2014, and traded within 0.2 percent of the weak end of its permitted trading range since January.