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China’s Capital Outflow Surges to Highest Since 2016 in April
China’s capital outflows worsened in April, underscoring headwinds for the yuan amid a weak domestic economy and uncertainties over the Federal Reserve’s rate trajectory. Local firms purchased the largest amount of foreign exchange from banks since 2016 in April, while exporters held back dollar conversion and residents snapped up foreign currencies for overseas travel, official data released on Friday showed. These factors indicate a cautious view on the yuan, as China’s relatively low interest rate versus the US favors the dollar. And while the People’s Bank of China has stepped in to keep the yuan in a ... (full story)