How are China's capital controls affecting cross-border transactions?

A quicktake on how the central bank's latest cash curbs impact outbound deals, offshore loans and overseas payments by individuals and corporates

10 minute read February 02, 2017 at 10:59 PM

Susan Mok

How are China's capital controls affecting cross-border transactions?

While managing a capital outflow crisis as foreign investors cash out of the market and companies repay dollar loans amid a depreciating currency, China's policymakers have implemented a wide array of tools since 2014 to plug the leakage, by tightening capital controls and exhausting foreign exchange (FX) reserves to defend the renminbi.

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