China's FX Outflows Not Showing Any Signs Of Slowing: DB

Despite initiating macro-prudential measures, China’s FX outflows have yet to show signs of abating, as analysts at Deutsche Bank believe they could be nearly $110 billion last month, which is similar to December. Perry Kojodjojo and Mallika Sachdeva highlight in their Feb. 26 research note titled “RMB: Rough seas ahead” that Chinese corporates are also actively trimming their FX liabilities with foreign banks. China’s FX outflows could be driven by corporate activities Taking a closer insight into China’s FX outflow dynamics, the DB analysts point out that Chinese authorities decline to publish net FX purchasing data by financial institutions, which is a major data…