China’s Regulators Ban Net Renminbi Outflows From Banks Amid Currency Concerns

[kreslik.news]

China’s regulators are reportedly clamping down on banks from making net renminbi outflows, closing one of the remaining capital control loopholes, in a move that is perceived as a setback for the Chinese government’s broader strategy of internationalising its currency, according to a Financial Times report today. 

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Clampdown

According to the report, banks in Shanghai must import Rmb100 for every Rmb100 they allow a client to remit overseas, ensuring no net outflows of the Chinese currency. They were previously allowed to remit Rmb160 overseas for every Rmb100 they ... (read more)