China imposes strict controls to stem capital outflows and stabilise the yuan. Photo: AP
China ‘stuck’ as rigid controls on capital outflows becoming harder to peel back
- China imposes a strict capital account system to control the yuan exchange rate, its international balance sheet and the size of foreign exchange reserves
- But the regime comes with risks, analysts say, including distorting supply and demand in the foreign exchange market and restricting investment in some areas
China imposes strict controls to stem capital outflows and stabilise the yuan. Photo: AP