China records capital inflow in February 201216 March, 2012, 15:09. Posted by Zarathustra
Tags: Capital flow, Economy, Trade
The People’s Bank of China published the detailed tables to their latest monetary statistics for February 2012.
In particular, we look at the change in position for forex purchase, a gauge in money flow. For February, the overall position for FX purchase remained stable, increasing slightly by about RMB25 billion. Taken into account for the record trade deficit in February, China would record capital inflow of about RMB223 billion in February.
Despite inflow, however, the fact that it is almost completely offset by trade deficit means that the overall impact on monetary condition remains relatively limited.
Source: People’s Bank of China