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Goldman Warns China Outflows Rising in Both Yuan Payments, Forex

  • Pressures could worsen in first quarter of next year: analyst
  • Offshore yuan rises Monday after PBOC strengthens fixing
Bloomberg business news

Cochinos: Renminbi to Reach Inflection Point in 2017

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China’s capital outflows are accelerating and the central bank is selling larger amounts of foreign exchange, Goldman Sachs Group Inc warned as the yuan headed for its biggest annual decline in more than 20 years.

A net $69.2 billion exited the nation in November, compared with a monthly pace of around $50 billion since June, Goldman economists led by Hong Kong-based MK Tang wrote in a note Friday. Money has been leaving in yuan payments for 14 consecutive months, while the central bank’s yuan positions have slumped the most since January. The situation could get worse, said Banny Lam, head of research at CEB International Investment Ltd.