Capital Controls Won't Save the Yuan

Lior Alkalay - INO.com Contributor - Forex


China's financial markets are caught in what some are calling "the perfect storm." It's been roughly six months since the situation dramatically escalated. As of yet, there are no signs of a calming sea.

Thus, there are more and more very vocal voices calling for China to enforce capital controls to save the Yuan. The intent is to keep the Chinese dragon from losing its balance.

This move may not mesh well with China's plans to liberalize its economy, but it's really not a bad idea. While it might help stem the crisis in China's financial system, it's unlikely to save the Yuan from plunging lower. Continue reading "Capital Controls Won't Save the Yuan"