China will sustain efforts to open capital account notwithstanding volatile Yuan
China is on the verge of maintaining its push to start its capital account notwithstanding recent Yuan’s volatility. It’s also planning to spur oversight of cross-border capital flows.
While further promoting capital account convertibility, the Chinese government is going to focus on building a macro-prudential regulatory framework specially for cross-border capital flows.
Chinese officials haven’t provided a fixed timetable for making the Yuan freely tradable, while market watchers believe that authorities, having faced with new pressure on China’s currency, have reinforced capital controls for recent months in a bid to stem fund outflows.
The Yuan reached six-year minimums on Friday, on course to report its greatest dip since August the previous year, when the major bank suddenly devalued the currency, thus spreading turmoil in financial markets around the globe.