Dinar Daily
Welcome to Dinar Daily Discussions.

Logging in with your USERNAME allows you to participate in discussions, see what has recently been posted, and other options. Guests have limited abilities.

We are NOT a guru forum. We are a dinarian forum. The opinions expressed on the forum do not reflect the of opinion of Dinar Daily specifically, but rather reflect the views of the individual posters only.

Disclamer:

We are in compliance with, "Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use."




Join Us for Dinar Discussions and More -- We Keep it REAL
 
HomeSearchFAQLog inRegister
YOU MUST Sign in with your USERNAME to POST
Follow us on TWITTER
DINAR INFORMATION LINKS

PARTNER SITES
Key Words
Adam Montana, AdminBill, Benjamin Fulford, Currency Exchange, David Schmidt, Dinar, Dinar Guru, Dinar Recaps, Dinar Rv, Dinar Scam, Dr Clarke, Frank26, Gary Larrabee, Gurus, Guru Hunters, JerzyBabkowski, Kaperoni, Kenny, Monetary Reform, Mnt Goat, My Ladies, Okie, Poppy, RamblerNash, Ray Renfrow, Redenomination, Revaluation, Ssmith, TNTBS, Tnt Tony, WING IT, We Are The People, Willis Clark, WSOMN, Yosef, Zap
Share | 
 

 China's bank deposits fall as investors sell yuan

View previous topic View next topic Go down 
AuthorMessage
lexie
Elite Member
Elite Member
avatar

Posts : 1812
Join date : 2011-06-24

PostSubject: China's bank deposits fall as investors sell yuan    Fri Dec 16, 2011 9:59 am

Dec 16, 2011 03:04 EST

China's bank deposits fall as investors sell yuan

Chinese investors withdrew hundreds of billions of yuan from major banks in the first 10 days of December, state media said Friday, on falling expectations the currency will strengthen.

Deposits fell 400 billion yuan ($62.8 billion) as the unit comes under the biggest selling pressure since the 2008 global downturn, with a slowing domestic economy and turmoil in Europe and the United States fuelling demand for the US dollar.

The withdrawals appear to have affected lending, with the big four banks issuing just 30 billion yuan in new loans in the 10-day period. Chinese banks gave out a total 562.2 billion yuan in November.

Half of the withdrawals were from the Bank of China, which has the largest foreign exchange business, the 21st Century Business Herald said, citing unidentified sources.

Other banks affected were the Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China, the report said.

Depositors may be withdrawing funds because they no longer expect the yuan to appreciate strongly next year, it said.

Export-dependent China tightly controls the value of the currency, which critics say gives the country's manufacturers an unfair trade advantage by making their products artificially cheap.

As demand for Chinese shipments weakens, policymakers are expected to prevent a strong appreciation in the yuan to avoid a collapse in exports and widespread job losses in the manufacturing sector, a key engine of growth.

The yuan has touched the lowest point its tight trading band in 11 of the past 12 trading sessions as investors bought dollars and domestic exporters hoarded their greenbacks rather than exchange them for yuan.

The central bank has responded by setting the central parity rate, the daily midpoint of the yuan's allowed trading band, at a stronger rate than the weakest level of the previous day, in an apparent effort to stop the unit depreciating too quickly and deflect criticism from trade partners.

The yuan is allowed to trade 0.5 percent on either side of the midpoint.

Currencies of emerging economies have been under pressure as investors worried about the downturn in Europe and the United States buy US dollars, which are considered a safe haven during economic uncertainty.

Source: AFP Global Edition



http://www.newsmeat.com/news/meat.php?articleId=124158359&channelId=2951&buyerId=newsmeatcom&buid=3281



*****************
"WHEN THE POWER OF LOVE OVERCOMES THE LOVE OF POWER, THE WORLD WILL KNOW PEACE"
Back to top Go down
View user profile
 
China's bank deposits fall as investors sell yuan
View previous topic View next topic Back to top 
Page 1 of 1

Permissions in this forum:You cannot reply to topics in this forum
Dinar Daily :: AROUND THE WORLD NEWS and CURRENT EVENTS :: WORLD-
Jump to: