Capital controls are working - SupChina

Capital controls are working

  • China’s yuan outflows plummet, showing capital controls pay off / Bloomberg
    Data from the State Administration of Foreign Exchange (SAFE) shows that “the equivalent of a net $309.4 billion left China via yuan payments in 2016.” Partly as a result of these outflows, the yuan dropped in value against the dollar “the most in more than two decades,” and China’s foreign reserves fell “near the psychologically relevant $3 trillion level.” This prompted regulators to take a variety of steps to slow down capital outflows, which Bloomberg says are now starting to show results.

Jeremy Goldkorn

Jeremy Goldkorn worked in China for 20 years as an editor and entrepreneur. He is editor-in-chief of SupChina, and co-founder of the Sinica Podcast.

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