Not exact matches
Sanctions, the bank noted, «negatively affected business confidence, limited the ability
of companies and banks to access international debt markets and contributed to an
increase in private
capital outflow.»
The IIF said a reversal
of non-resident
capital inflows prompted largely by repayment
of dollar debt by Chinese companies also had combined with
increased capital outflows from residents.
They include upwards revisions in economic forecasts, expectation
of monetary tightening, rising real and nominal long - term interest rates, fiscal stimulus on a huge scale in a full employment economy, rising protectionism that should choke off import flows, and tax reform directed at reducing
capital outflows and
increasing capital inflows.
Beijing is trying to boost domestic liquidity in the hopes that this will generate stronger domestic demand, but expanding liquidity fuels
capital outflows, and these put downward pressure on the currency, while
increasing PBoC concerns about the monetary impact
of money leaving the economy which, as an article in last week's FT argues, might be worse than we think.
In the early 1970s, Australia's combination
of a fixed exchange rate and a significant
increase in
capital inflows prompted the introduction
of temporarily stronger controls on inflows, alongside reduced controls on
outflows.
The currency is being let off its leash right at the moment when market sentiment on China is pessimistic because
of a continuing economic slowdown, an
increase in private
capital outflows, and entrenched producer price deflation.
«Following the Asian crisis in 1998, many emerging markets significantly
increased their foreign exchange reserves as a precautionary measure against the future risk
of destabilising
capital outflows.
Net debt excluding zinc metal prepay and perpetual securities
of EUR 1.351 billion at the end
of Q1 2018, an
increase of EUR 249 million on 31 December 2017 driven predominantly by working
capital outflow mainly due to higher commodity prices and amortisation
of prepays.
I have also noted that the latest data out
of the BEA shows that foreign
capital has moved from inflows (throughout the period
of 2009 - 2016) to
outflows this year, which means that any
increases in equity prices will have to come from domestic investors.