“La sabiduría de la vida consiste en la eliminación de lo no esencial. En reducir los problemas de la filosofía a unos pocos solamente: el goce del hogar, de la vida, de la naturaleza, de la cultura”.
Lin Yutang
Cervantes
Hoy es el día más hermoso de nuestra vida, querido Sancho; los obstáculos más grandes, nuestras propias indecisiones; nuestro enemigo más fuerte, el miedo al poderoso y a nosotros mismos; la cosa más fácil, equivocarnos; la más destructiva, la mentira y el egoísmo; la peor derrota, el desaliento; los defectos más peligrosos, la soberbia y el rencor; las sensaciones más gratas, la buena conciencia, el esfuerzo para ser mejores sin ser perfectos, y sobretodo, la disposición para hacer el bien y combatir la injusticia dondequiera que esté.
MIGUEL DE CERVANTES Don Quijote de la Mancha.
4 de enero de 2017
China Said to Consider Options to Back Yuan, Curb Outflows
Bloomberg News
Authorities may order state-owned firms to sell dollars
Offshore yuan surges most in a year amid support talk
China has studied possible scenarios for the yuan and
capital outflows this year and is preparing contingency plans, according
to people familiar with the matter. The offshore yuan surged the most
in a year.
The authorities have used stress tests, models and
field research, said the people who asked not to be identified as the
studies haven’t been made public yet. Financial regulators have already
encouraged some state-owned enterprises to sell foreign currency and may
order them to temporarily convert some holdings into yuan under the
current account if necessary, they added. The State Administration of
Foreign Exchange didn’t immediately reply to a fax seeking comment.
The
reported plans come amid increasing pressure on the yuan from a
resurgent dollar, rising capital outflows and concern that U.S.
President-elect Donald Trump may make good on his threats to take
punitive measures on China’s exports. Policy makers in Beijing have
recently taken a slew of measures to tighten control of the currency
market, including placing higher scrutiny on citizens’ conversion quotas and stricter requirements for banks reporting cross-border transactions.
“China has been challenged by capital outflows and declining
foreign-exchange reserves, and policy makers are taking measures to
solve the problem,” said Eddie Cheung, a Hong Kong-based
foreign-exchange strategist at Standard Chartered Plc, the most accurate
forecaster for Asian emerging-market currencies according to a
Bloomberg ranking. "Funds will continue to exit in the first half due to
individuals’ purchases of the dollar and on concerns of U.S. political
uncertainty.”The offshore yuan jumped 0.9 percent to 6.8958
per dollar as of 7:20 p.m. Hong Kong time. That’s the biggest increase
since January 2016. The currency traded in Shanghai climbed 0.3 percent,
the most since July, to 6.9400. The Bloomberg Dollar Spot Index fell
0.4 percent.
China
may also further sell U.S. Treasuries in 2017 if needed to keep the
yuan’s exchange rate stable, the people said, adding that the size of
the reduction will depend on capital outflows and market intervention.
The nation’s holdings of Treasuries declined to the lowest in more than
six years in October as the world’s second-largest economy used its
currency reserves to support the yuan.
China’s currency stockpile
has probably shrunk further after hitting a five-year low of $3.05
trillion in November, according to the median estimate in a Bloomberg
survey before data due as early as this week.
Capital outflows
from China accelerated in recent months as the yuan suffered its worst
year of losses against the U.S. dollar since 1994, declining 6.5
percent. About $760 billion left the country in the first 11 months of
2016, according to a Bloomberg Intelligence gauge. The yuan will decline
2.7 percent the rest of this year, according to the median estimate in a
Bloomberg survey.
“The policies, if implemented, can help increase
foreign-exchange supply in the onshore market, and hence help defend the
yuan in the short term,” said Carol Pang, vice president for fixed
income, currency and commodities at Zhongtai International Holdings Ltd.
in Hong Kong. “However, it won’t change market expectation of further
depreciation.” — With assistance by Tian Chen, and Steven Yang
China Said to Prep Support Plan for Yuan, Outflows