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China Stops Reporting Key Data Showing Size Of Its Capital Outflows
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden on 02/19/2016 11:04
When it comes to following China’s capital outflows, the traditional place to keep track has been China’s official reserve data released monthly, which however as we showed previously can and often is manipulated to give the impression of generally smalle numbers. We noted one example in October when China disclosed an official outflow of $43 billion, yet this number was largely incomplete, and short of the total, due to the PBOC’s recent adoption of using currency forwards to manipulate the Yuan, something not tracked by the official reserve number.
This is what Goldman said at the time about a relatively more reliable data set which provides a more accurate snapshot of China’s capital position:
In our view, a preferred gauge of FX-RMB conversion trend amongst onshore non-banks would be SAFE data on banks’ FX settlement on behalf of their onshore clients (to be out on October 22nd). That report captures banks’ FX transactions vis-à-vis non-banks through both spot and forward transactions (for August this data showed an FX outflow of $178bn). But to assess the overall FX-RMB trend, including in the offshore RMB (CNH) market, other FX data sets such as the position for FX purchase would be useful supplements—these are not affected by valuation effects and include FX settlement between the onshore banking system and offshore banks, although they do not account for forward transactions. Data on the position for FX purchase covering the PBOC should be out on October 14, and similar data covering the whole onshore banking system (PBOC plus banks) should be released at around the same date, although this is not completely clear.
It appears that China has finally figured out this loophole to track the PBOC’s attempts at masking the sheer size of its outflows, because as SCMP reported overnight, “sensitive data is missing from a regular central bank report in China amid concerns about the flow of cash out of the country as its economy slows and currency weakens.”
The post China Stops Reporting Key Data Showing Size Of Its Capital Outflows appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/19/china-stops-reporting-key-data-showing-size-of-its-capital-outflows-2/
