Chinese currency outflows are bigger than you think: Goldman

Miami /
Oct.October 11, 2016 03:45 PM
 

From the New York website: Currency outflows from China may be far bigger than previously thought, according to investment bank Goldman Sachs.

Bloomberg had previously estimated that a net $550 billion had left China between January and August. But that figure only counts funds that are converted from yuan to U.S. dollars within China and then moved out of the country. According to Goldman Sachs, savers often move yuan out of the country and then convert them to dollars in offshore markets.

Those transactions haven’t been included in counts of Chinese currency outflows. Goldman Sachs estimates that these offshore deals accounted for 56 and 87 percent of all outflows in July and August.

Selling yuan in offshore markets puts downward pressure on its exchange rate. The currency has depreciated 3.3 percent against the dollar this year.

Chinese savers looking to get money out of the country have been buying up New York properties for years, in a major boost to the market. [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
Dan Deitchman and Koby Assaraf with a rendering of Industry | Oakland Park

Oakland Park developer partners with former Link Real Estate exec on new firm

Oakland Park developer partners with former Link Real Estate exec on new firm
Renderings of the project (Group P6)

Group P6 lands $69M construction loan for Boca Raton project

Group P6 lands $69M construction loan for Boca Raton project
Alex Sapir and Bella Sapir (Credit: Mark Von Holden/WireImage via Getty Images, and ADRIEL REBOH/Patrick McMullan via Getty Images)

Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside

Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside
Renderings of the project and Gil Dezer (Getty; Renderings via  Zyscovich Architects)

Dezer’s 30-acre megaproject in North Miami Beach gets first approval

Dezer’s 30-acre megaproject in North Miami Beach gets first approval
Jeff Burns, Nick Rojo, The Bohemian Lake Worth

Affiliated Development’s Lake Worth Beach apartment project approved

Affiliated Development’s Lake Worth Beach apartment project approved
A rendering of the Intracoastal Mall and Gil Dezer

Dezer’s plans to remake Intracoastal Mall face opposition

Dezer’s plans to remake Intracoastal Mall face opposition
Alta Developers CEO Raimundo Onetto and Le Parc at Brickell rendering

Le Parc at Brickell condo association sues Alta Developers and partner for alleged construction defects

Le Parc at Brickell condo association sues Alta Developers and partner for alleged construction defects
Biscayne Beach

Lawsuit accuses Biscayne Beach developer and construction firms of shoddy work

Lawsuit accuses Biscayne Beach developer and construction firms of shoddy work
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...