China Must Tread Carefully on Outflow Controls, RBA's Lowe Says
- Continued curbs on cash could send wrong message to investors
- Central bank chief discusses challenges of yuan globalization
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China should be wary of the message investors take away from its clampdown on capital leaving the country as it may be interpreted as concern about the economy, Australia’s central bank chief said.
Reserve Bank of Australia Governor Philip Lowe commended his Beijing counterparts over their efforts to internationalize the yuan, but noted the recent tightening of its capital border, in notes of a speech to be delivered in Sydney Thursday evening. He was speaking at an event on yuan globalization and didn’t comment on Australia’s monetary policy or economy.