World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
China’s Jittery Savers Could Pose Capital-Flight Threat
Keywords:
Tags:
China's affluent people could become nervous about the value of the currency and try to convert into dollars. Aaron Back of the WSJ poses the question what if the affluent 1-2% of China's urban population of 737 million convert the maximum of $50,000 permitted from yuan into dollars. He says the simple math shows this would result in outflows of around $370 billion to $740 billion. This does not include other ways in which money could exit the country. China's foreign exchange reserves are $3.3 trillon, but this includes illiquid investments such as loans to Venezuela for oil assets, and the Asian Infrastructure Investment Bank. With a large and aging population China has to have reserves to meet social security and other plans for the future. This means the reserves could quickly dwindle with unanticipated capital outflows. This is what keeps central bank PBOC planners focussed on limiting depreciation of the yuan currency.
China's potential capital outflows in 2016-2017 if 1-2% of the urban population convert the max of $50,000 from yuan to dollars- $370 billion -$740 billion
01/15/2016
The most affluent of the $737 million Chinese in cities could become nervous about loss of value in the currency and convert up to the maximum of $50,000. This would lead to larger capital outflows than the PBOC has in mind., says Aaron Back of the WSJ in Jan. 2016. This worries the central bank PBOC, because the reserves of $3.3 trillion include illiquid investments such as loans to Venezuela on oil assets, the Asian Infrastructure Bank and other investments. With its large and aging population China also has to keep reserves for future Social Security and other plans.
Grouped Articles
China’s Jittery Savers Could Pose Capital-Flight Threat
Wall Street Journal 01/15/2016
Economist 01/19/2016
Currency War: U.S. Hedge Funds Mount New Attacks on China’s Yuan
Wall Street Journal 02/01/2016
China’s Forex Reserves Plunge to More-Than-Three-Year Low
Wall Street Journal 02/08/2016
Wall Street Journal 02/08/2016
China Stanches Flow of Money Out of the Country, Data Suggests
New York Times 04/07/2016
New dynamic for China's yuan in 2012- outflows of capital from China and weakening of the yuan
04/19/2011
Grouped Articles
Wall Street Journal 10/04/2011
Brawny Yuan Stands Apart from the Crowd
Wall Street Journal 12/10/2013
China Takes a Smoother Path to Currency Devaluation
Wall Street Journal 11/25/2015
China’s Renminbi Declines After Being Named a Global Currency, Posing Challenges
New York Times 12/18/2015
Why China Shifted Its Strategy for the Yuan, and How It Backfired
Wall Street Journal 01/10/2016
Chinese Official: Bets Against Yuan Are ‘Ridiculous and Impossible’
Wall Street Journal 01/12/2016
China's policy of gradually weakening the yuan in 2015-2016 and the risks in capital outflows, decline of the currency
01/10/2016
Grouped Articles
Why China Shifted Its Strategy for the Yuan, and How It Backfired
Wall Street Journal 01/10/2016
Chinese Official: Bets Against Yuan Are ‘Ridiculous and Impossible’
Wall Street Journal 01/12/2016
Confused by China’s Yuan? It’s Intentional
Wall Street Journal 01/15/2016
China’s Jittery Savers Could Pose Capital-Flight Threat
Wall Street Journal 01/15/2016
Economist 01/19/2016
Currency War: U.S. Hedge Funds Mount New Attacks on China’s Yuan
Wall Street Journal 02/01/2016
The People's Bank of China policy on the currency yuan in 2016
01/15/2016
Experts close to the central bank say the policy of the PBOC is to make it expensive for speculators to try to make gains on China's yuan currency. PBOC policy according to them is to allow for a modest depreciation and let the currency oscillate. When speculators hope to make gains the central bank intervenes to go the other way. The PBOC hope to limit outflows of capital, a problem in 2015, in this way.
Grouped Articles
Confused by China’s Yuan? It’s Intentional
Wall Street Journal 01/15/2016
China’s Jittery Savers Could Pose Capital-Flight Threat
Wall Street Journal 01/15/2016
Currency War: U.S. Hedge Funds Mount New Attacks on China’s Yuan
Wall Street Journal 02/01/2016
China Stanches Flow of Money Out of the Country, Data Suggests
New York Times 04/07/2016
China's currency, the yuan, and the central bank PBOC's effort to limit depreciation of the currency and capital outflows in 2016-2017
01/15/2016
Linked Articles
China’s Jittery Savers Could Pose Capital-Flight Threat
Wall Street Journal 01/15/2016
Confused by China’s Yuan? It’s Intentional
Wall Street Journal 01/15/2016
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us
