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China monitoring ruble fall: Regulator
December 18, 2014, 5:05 am

Chinese enterprises and financial institutions should use forward and swap facilities to avoid risks, said a senior official at the State Administration of Foreign Exchange, Wang Yungui [Xinhua]

Chinese enterprises and financial institutions should use forward and swap facilities to avoid risks, said a senior official at the State Administration of Foreign Exchange, Wang Yungui [Xinhua]

China’s foreign exchange regulator expressed concerns over the recent devaluation of the Russian ruble on Thursday, but confirmed it was tracking the situation.

Chinese enterprises and financial institutions should use forward and swap facilities to avoid risks, said a senior official at the State Administration of Foreign Exchange, Wang Yungui, during a press conference in Beijing.

The ruble plummeted to a historic low two days ago before a moderate recovery that saw it stabilize at 100 rubles to 10.27 yuan (1.65 US dollars) on Thursday.

Wang noted that the situation had not affected transnational capital flow in China but the situation would continue to be assessed.

China and Russia, Wang said, were close trade partners and healthy bilateral trade was expected to continue.

“Under the circumstance, signs of capital outflows in certain months are normal. Overall, we still see net capital inflows,” he said.

China’s exports to Russia increased 10.5 per cent year on year and imports 2.9 per cent in the first three quarters of the year, with total trade volume valued at $70.78 billion.

The Russian Finance Ministry has begun selling its leftover currency reserves on the market, the ministry’s press office said Wednesday.

The amount that can be sold on the market is almost $7 billion, which “involves funds on the federal budget’s single account in Russian Federal Treasury,” according to the ministry.

The move is part of the government’s new measures taken on Tuesday to stabilize domestic foreign currency market and prop up the ruble.

 

Source: Agencies

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