FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 20 November 2017

China's Capital Controls Appear To Arrest Flight, Stabilize Currency

from the Dallas Fed

-- this post authored by J. Scott Davis

China’s foreign exchange reserves and the value of its currency peaked in 2014. From mid-2014 to year-end 2016, foreign exchange reserves fell $1 trillion, amounting to about 10 percent of gross domestic product (GDP). Meanwhile, the yuan lost about 14 percent of its value against the U.S. dollar.

Chinese foreign exchange reserves have since stabilized, with the currency appreciating about 4.5 percent in the first nine months of 2017.

Two lines of thought have attempted to explain the currency’s behavior. One is that Chinese capital controls prevented the type of capital flight from the country that could turn balance-of-payments instability into a broader currency calamity. The other supposition is that foreign capital returned to China with the reemergence of global growth and investment prospects there.

[click on image below to continue reading]

Source media/documents/ research/eclett/ 2017/el1712.pdf

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Contributors

Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved