| In another one of its conflicting policy moves, the Chinese government wants to clamp down on currency speculation, while simultaneously letting the yuan trade freely. Beijing plans to further open up its capital markets and develop its foreign exchange market as it aims to “accelerate the renminbi convertibility on the capital account,” Deputy Central Bank Governor Yi Gang wrote in an article published in China Finance magazine, a central bank publication. Renminbi is another name for the yuan.
While the yuan is already convertible under China’s current account, the broadest measure of trade in goods and services, the capital account, which covers portfolio investment and borrowing, is still subject to restrictions due to worries about abrupt capital flight and hot money inflows, reported Reuters...............................................Full Article: Source
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