The People’s Bank of China and the country’s security forces are stepping up efforts to rein in illegal money-transfer agents who make a living by helping people move money out of China. These efforts are meant to slow down the capital outflow.
Moreover, according to a new central bank rule, which starts October 15, the reserve requirements will be more demanding for people trading in the foreign exchange market. Thus, bets on the yuan weakness will become less profitable.
Some of the country’s largest lenders, including Bank of China Ltd. and China Citic BankCorp., are beefing up their internal checks of corporate clients, according to the Chinese banking executives. The Chinese companies can exchange yuan for foreign currencies only for paying for imports or approved foreign investments.
The Chinese authorities suppose that the tough measures will contribute to stability of the yuan and reduction in capital outflows.
Economists at Goldman Sachs Group Inc. said that since August 11, the day of the yuan devaluation, around $150-200 billion has left the country.
