A more flexible yuan exchange rate has increased China’s monetary policy leeway, but the central bank’s former statistics chief says letting in capital unrestricted, while restricting outflows, could damage the domestic economy. Photo: Reuters A more flexible yuan exchange rate has increased China’s monetary policy leeway, but the central bank’s former statistics chief says letting in capital unrestricted, while restricting outflows, could damage the domestic economy. Photo: Reuters
A more flexible yuan exchange rate has increased China’s monetary policy leeway, but the central bank’s former statistics chief says letting in capital unrestricted, while restricting outflows, could damage the domestic economy. Photo: Reuters

China’s rapid yuan rise and wave of hot money inflows prompt concerns of asset bubbles and inflation

  • A more flexible yuan exchange rate has increased China’s monetary policy leeway, but strong capital inflows could result in excess credit expansion
  • Large amounts of extra money in the China market could increase demand for housing, stocks, commodities and other assets, driving up prices to unsustainable levels

Topic |   Yuan
A more flexible yuan exchange rate has increased China’s monetary policy leeway, but the central bank’s former statistics chief says letting in capital unrestricted, while restricting outflows, could damage the domestic economy. Photo: Reuters A more flexible yuan exchange rate has increased China’s monetary policy leeway, but the central bank’s former statistics chief says letting in capital unrestricted, while restricting outflows, could damage the domestic economy. Photo: Reuters
A more flexible yuan exchange rate has increased China’s monetary policy leeway, but the central bank’s former statistics chief says letting in capital unrestricted, while restricting outflows, could damage the domestic economy. Photo: Reuters
READ FULL ARTICLE