Corporates face curbs on 'irrational' outbound deals and stronger scrutiny of big-ticket FX transactions under the capital account, regulators confirm.
As government regulators try to stem capital outflows, big-ticket FX purchases and settlements under corporate capital account items face tougher scrutiny.
China’s central bank might move to introduce greater flexibility to renminbi’s exchange rate, which in turn would increase the currency’s two-way volatility, according to HSBC.
The IMF has endorsed the renminbi as a freely usable currency, recognising China’s increased importance in the global financial market. The renminbi’s journey to attaining this status was never straightforward.
Finance ministers and central bankers from the G20 group have promised to give each other a heads-up on actions that could trigger major devaluations of their currencies.
The People’s Bank of China wavered on the renminbi’s fixed rate in the first week of 2016, leaving many puzzled as to its stance on the currency and questioning the transparency of its policies.