China ‘must prevent reversal’ of hot money flows as US kicks off monetary tapering, former official warns

Nov 3, 2021 | INVESTING

China should be mindful of a potential reversal of capital flows as the US Federal Open Market Committee gets ready to kick off its monetary tapering by dialing back US$120 billion worth of monthly bond purchases, a former Chinese central bank official has warned.There are rising concerns among investors that the tapering exercise will result in a more unstable yuan, as large amounts of capital – i.e. hot money – will rush into the Chinese market as investors bet on the yuan’s one-way…

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