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Outflows in sentence

228 examples of Outflows in a sentence

In these circumstances, a loan from the European Stability Mechanism – the eurozone’s bailout fund – would merely provide fuel for even higher outflows.
China has lately faced a surge in capital outflows, which has created substantial downward pressure on the renminbi’s exchange rate.
Those outflows are partly a result of the Chinese government’s easing of capital-account restrictions – an effort that should allow households, corporations, and institutional investors to diversify their portfolios by increasing their foreign holdings.
The outflows also reflect concerns about China’s economic prospects, including mounting financial risks, as well as fears among some wealthy Chinese that they may be targeted by President Xi Jinping’s anti-corruption drive.
Rather than allow the renminbi’s value to decline as fast as markets would dictate, the PBOC has stepped in to limit capital outflows and offset depreciation pressure.
Moreover, if China develops financial problems, capital outflows may accelerate.
In part because of low income elasticity of demand for agricultural products, outflows of labor from agriculture are an inevitable outcome during the process of development.
Until the European Central Bank stepped in last August to become the central bank not just of Germany and France, but also of the distressed peripheral countries, the latter were like emerging-market economies that had borrowed in foreign currency and faced abrupt capital outflows.
As the two largest sources and destinations for foreign investment, accounting for a combined 56% of global FDI outflows and 42% of inflows, the US and EU have a particular interest in ensuring a well-functioning international investment regime.
The last major depreciation of the Chinese renminbi began in the second half of 2015, triggered by a surge in capital outflows.
Moreover, according to the State Administration of Foreign Exchange, China’s current-account and non-reserve financial-account surpluses stood at $5.8 billion and $18.2 billion, respectively, in the second quarter of 2018With “twin surpluses” in the second quarter and July, and with no detectable large-scale capital outflows, the renminbi’s sharp depreciation becomes more difficult to explain.
Judging by low stock prices and high capital outflows, investors were already betting against high growth rates.
Reserve accumulation to defend the economy from sudden capital outflows could also compound one of the most disquieting lessons of the crisis.
But a combination of factors, including slowing economic growth and a gradual relaxation of restrictions on investing abroad, has unleashed a torrent of capital outflows.
As one of the world’s largest trading countries, it is virtually impossible for China to keep a tight lid on capital outflows when the incentives to leave become large enough.
Indeed, the share of world FDI outflows of the more than 30,000 multinational enterprises (MNEs) headquartered in emerging markets rose from roughly 5% in 1990 to more than one-quarter today.
Moreover, Spain’s debt with the ECB’s TARGET settlement system rose by €55 billion ($72 billion) between February and March, because capital outflows of that amount had to be compensated.
When a potential or actual loss of confidence in the currency threatens to bring about large capital outflows, intervention usually takes the form of sales of foreign-exchange reserves to mitigate the magnitude or speed of depreciation.
From the vantage point of the European Central Bank, which is coping with another round of distress in the periphery (primarily in Italy, where the frailty of the banking system is fueling capital outflows), the euro’s weakness is a godsend.
Finally, a stable dollar takes pressure off the renminbi, which should slow outflows of “hot” capital from China, removing another source of risk from the global financial system.
The concern is that countries that are dependent on foreign financing could be hit by sudden outflows of international capital, or that currency depreciation following the Fed hike could raise debt-servicing costs for countries and businesses.
But, of course, China still needs to find a way to cope with capital outflows, while pursuing the structural reforms that are needed to place its economy on a sustainable long-term growth path.
Given how much of its official reserves China has already spent stimulating the economy and stabilizing the exchange rate, as well as the size of capital outflows – equivalent to three times the current-account surplus last year – tactics like reducing reserve requirements would be key here.
In the current crisis, a substantial fraction of countries outside the G-20 are essentially defenseless: small relatively poor economies, no fiscal capacity for stimulus, and inadequate reserves to offset the capital outflows that occurred to shore up damaged balance sheets in advanced markets.
Germany has received 2.7 million new residents, net of outflows, over the last five years, nearly a million of whom are refugees.
This virtuous feedback loop has now turned vicious, with capital inflows amounting to only a fraction of outflows.
To discourage new lending and reduce the risk of capital outflows, the PBOC should tighten monetary policy.
But if Chinese savers expect the renminbi to depreciate further, this measure could be offset by capital outflows – even with the capital controls the government currently has in place.
And, thanks to a fully convertible ruble and the absence of restrictions on capital outflows, they can transfer their gains to offshore tax havens.
An initiative of African finance ministers, chaired by former South African president Thabo Mbeki, is investigating the issue on the continent, where up to $1.4 trillion was lost to illicit outflows over the last three decades.
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