Beijing / Bloomberg
The International Monetary Fund (IMF)â€ˆis pushing China to disclose data on holdings of derivatives that could shed light on more-opaque methods of intervention in the yuanâ€™s exchange rate, the Wall Street Journal (WSJ)â€ˆreported.
The Washington-based lender is seeking data on the Peopleâ€™s Bank of Chinaâ€™s total holdings of forwards and futures, a step that would be in line with the nationâ€™s pledge last year to adhere to certain IMF disclosure standards amid efforts to win reserve-currency status for the yuan at the fund, the Journal said, citing unidentified people familiar with the matter.
Analysts at firms including Goldman Sachs Group Inc. have pointed to data in recent months showing a rise in holdings of forwards, suggesting itâ€™s part of a strategy to support the yuan without immediately draining Chinaâ€™s foreign-exchange reserves. Daiwa Capital Markets analyst Kevin Lai said earlier this month that using forwards helps avoid steeper reserve drops that would risk causing â€œpanicâ€ in financial markets.
â€œIt does suggest that the IMF feels that they are not getting the full picture,â€ TD Securities strategist Sacha Tihanyi said in an e-mail. Having more data would help the understanding of Chinaâ€™s policy stance in financial markets, he said.
The IMF said in an e-mailed statement that â€œwe continue to monitor and discuss Chinaâ€™s foreign currency reserves data and other data, in the course of our normal engagement with the authorities.â€
In a later e-mailed statement, the fund said that China subscribed to the Special Data Dissemination Standard at the end of 2015 and is disseminating its data accordingly, and that it hasnâ€™t asked for additional information from China.
Many central banks around the world, including those in Thailand, Malaysia and India, have frequently disclosed such derivatives data to the IMF, the Journal reported.