China's yuan funds outstanding for foreign exchange drop in October
BEIJING -- China's yuan funds outstanding for foreign exchange continued to drop in October, central bank's data showed.
The funds stood at 21.3168 trillion yuan ($3.1 trillion) at the end of October, down from 21.4084 trillion yuan a month earlier, according to the People's Bank of China (PBOC).
As the Chinese currency is not freely convertible under the capital account, the central bank has to purchase foreign currency generated by a trade surplus and foreign investment in the country, adding funds to the money market.
Such funds are an important indicator of cross-border foreign capital flows and domestic yuan liquidity.
As a similar measure of capital flows, China's foreign exchange reserves stood at 3.053 trillion dollars last month, down 33.9 billion dollars from a month earlier, PBOC data showed.
The State Administration of Foreign Exchange said despite the intricate international situation and growing uncertainty in the global market, the Chinese economy has maintained its stability and operated within a reasonable range so far this year.
