{"id":4866,"date":"2015-01-26T07:05:43","date_gmt":"2015-01-26T12:05:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4866"},"modified":"2015-01-26T07:05:43","modified_gmt":"2015-01-26T12:05:43","slug":"china-switches-to-supporting-yuan-as-outflows-mount-currencies","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4866","title":{"rendered":"China Switches to Supporting Yuan as Outflows Mount: Currencies"},"content":{"rendered":"<h3><a href=\"http:\/\/www.bloomberg.com\/news\/2015-01-26\/china-switches-to-supporting-yuan-as-outflows-mount-currencies.html\" target=\"_blank\"><span class=\"Apple-style-span\">China Switches to Supporting Yuan as Outflows Mount: Currencies<\/span><\/a><\/h3>\n<p>Managing the\u00a0<a href=\"http:\/\/topics.bloomberg.com\/yuan\/\">yuan<\/a>\u00a0is turning into a different game for\u00a0<a href=\"http:\/\/topics.bloomberg.com\/china\/\">China<\/a>\u2019s policy makers these days.<\/p>\n<p>After more than a decade of curbing the currency\u2019s gains to help turn the nation into a manufacturing colossus, there are signs the People\u2019s Bank of China is now propping up the yuan to stem an exodus of capital that\u2019s threatening the economy.<\/p>\n<p>A gauge of capital flows on the PBOC\u2019s balance sheet fell by the most since 2003 last month in a sign it\u2019s selling foreign currency, while the yuan\u2019s reference rate set daily by policy makers is at its<a class=\"web_ticker\" title=\"Get Quote\" href=\"http:\/\/www.bloomberg.com\/quote\/.CNYREF:IND\">strongest-ever<\/a>\u00a0level compared with the market price.<\/p>\n<p>\u201cEveryone thought the movie would never end, and suddenly it ended, so everyone is hurrying to leave,\u201d Kevin Lai, an economist at Daiwa Capital Markets in\u00a0<a href=\"http:\/\/topics.bloomberg.com\/hong-kong\/\">Hong Kong<\/a>, said by phone on Jan. 22. \u201cThe authorities need to think of a way to keep the audience in the theater\u201d as the economy slows, he said.<\/p>\n<p>China amassed a world-leading $4 trillion of foreign-exchange\u00a0<a class=\"web_ticker\" title=\"Get Quote\" href=\"http:\/\/www.bloomberg.com\/quote\/WIRACHIN:IND\">reserves<\/a>\u00a0by mid-2014 as exports surged and capital flowed in, attracted by a currency that strengthened for four consecutive years. Now that the yuan\u2019s gains are faltering, the PBOC is trying to prevent its declines from turning into a rout that could deter investment just as the economy suffers its slowest growth in 24 years.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China Switches to Supporting Yuan as Outflows Mount: Currencies Managing the\u00a0yuan\u00a0is turning into a different game for\u00a0China\u2019s policy makers these days. After more than a decade of curbing the currency\u2019s gains to help turn the nation into a manufacturing colossus, there are signs the People\u2019s Bank of China is now propping up the yuan to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2915,130,951,2913,2914,2615,1226,1031],"class_list":["post-4866","post","type-post","status-publish","format-standard","hentry","category-economics","tag-capital-flow","tag-china","tag-currency","tag-currency-manipulation","tag-pboc","tag-peoples-bank-of-china","tag-reserves","tag-yuan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4866"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4866\/revisions"}],"predecessor-version":[{"id":4867,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4866\/revisions\/4867"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}