China Should Open Up Yuan Then Ease Curbs, Ex-Regulator Says
- Officials worried about speculation as Chinese ‘go to extreme’
- Trading band may widen as part of process: ex-SAFE director
Former Chinese FX Regulator Guan Tao discusses the Chinese economy, Fed policy and weighs in on President Trump's attempt to talk down the dollar. He speaks with Bloomberg's Tom MacKenzie. (Source: Bloomberg)
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China needs to let more participants trade the yuan onshore, a market dominated by commercial banks, before it can consider lifting capital controls.
That’s the view of Guan Tao, former director of the international payments department at China’s State Administration of Foreign Exchange. Lenders and the People’s Bank of China are the main players in the domestic market, which also requires any buyer of foreign currency to show evidence they have a need for that money.