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October figures show China had its first monthly net outflow of foreign currency in 4 years as...

October figures show China had its first monthly net outflow of foreign currency in 4 years as the path of the yuan may not be the one-way bet it once was (higher). "Three years ago, perhaps the yuan was wildly undervalued, but now on the basis of these flow values, it's fairly valued," says ING's Tim Condon.
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Comments (3)
  • Tom Guttenberger
    , contributor
    Comments (717) | Send Message
     
    Perhaps Mr. Condon is unfamiliar with balance of payments, or perhaps even trend trading - would that seem a fair appraisal?

     

    Net foreign reserve outflow supports Yuan strength, and was an outcome completely telegraphed when they announced the central bank move to invest directly into their own banks.

     

    Governored one-way bet.
    21 Nov 2011, 10:47 AM Reply Like
  • kickshark
    , contributor
    Comments (31) | Send Message
     
    There's a massive outflow from India,too. Indian interest rate is one of the highest and still west dumps rupee. I can't understand the logic behind it.
    21 Nov 2011, 10:55 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9973) | Send Message
     
    Looks like foreign currency is being "repatriated" to cover risk asset losses at "home".
    21 Nov 2011, 02:35 PM Reply Like
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