China’s $3 Trillion In Reserves Questioned After PBOC Reports $41 BIllion In December Outflows

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zerohedge.com / by Tyler Durden / Jan 7, 2017 12:23 PM

In late December, ignoring the official Chinese monthly reserve data and instead using a dataset provided by China’s FX regulator SAFE on cross-border RMB flows and on onshore FX settlements, Goldman calculated the true amount of Chinese FX outflows and found that Beijing has continued to mask the full extent of its capital flight, which in November spiked to $69 billion (well above the reported, currency adjusted number of $34 billion). Furthermore, it found that “since June, this data has continued to suggest significantly larger FX sales by the PBOC than is implied by FX reserve data.”

Even more troubling, Goldman calculated that cumulatively since August 2015 through November 2016, FX outflow totaled roughly US$1.1 trillion, while implied FX sales suggested by PBOC’s FX position (headline reserves after adjusted for currency valuation effect) were approximately US$630bn (US$540bn), indicating that the real rate of reserve depletion was nearly double that represented by PBOC reserve data.

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Read more ... source: The Bitcoin Channel

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