China's FX regulator sees increasing volatility in capital flows
Published on Apr 24, 2014 2:31 PM
BEIJING (Reuters) - China's slowing economic growth and United States monetary tapering will lead to increasing fluctuations in cross-border capital flows, the country's foreign exchange regulator said on Thursday.
Capital flows into China picked up last year, but may reverse this year, as economic growth loses momentum and the yuan currency continues to depreciate.
"Currently there are still many unstable and uncertain factors in domestic and global markets," Guan Tao, head of the department of international payments at the State Administration of Foreign Exchange (SAFE) said in a webcast carried on the website of the official People's Daily newspaper.
"We expect cross-border capital flows will keep two-way fluctuations," Guan said, highlighting slowing growth as a factor for swings in capital flows.
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