http://www.businessinsider.com/r-exclusive-china-plans-greater-yuan-convertibility-inside-and-outside-ftzs-2015-4
China is taking a major step to reducing restrictions on the convertability of the Yuan, for the moment in free trade zones but with plans to take this nationwide. This plan will allow it to be significantly easier to convert the Yuan to other currencies and is a major step towards liberalization in China. It signals a further move towards a market economy for China in addition to slow reform in its institutions. These steps are likely being undertaken with the hopes of maintaining China's stellar growth rate which has begun to stagnate slightly in the past few years.
China is taking a major step to reducing restrictions on the convertability of the Yuan, for the moment in free trade zones but with plans to take this nationwide. This plan will allow it to be significantly easier to convert the Yuan to other currencies and is a major step towards liberalization in China. It signals a further move towards a market economy for China in addition to slow reform in its institutions. These steps are likely being undertaken with the hopes of maintaining China's stellar growth rate which has begun to stagnate slightly in the past few years.
1 comment:
I think this a great move on China's part. Bringing change but slowly, as drastic changes are never good. this is also a step towards making the yuan a powerful global currency, and also expanding it's capital account.
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