- 3 year experiment in Shanghai free trade zone doesn’t necessarily mean China’s capital account will be completely open within that period
From the Peoples Bank of China chief economist Ma Jun who says
the Shanghai free-trade zone is an experiment for yuan convertibility. Most countries still have certain restrictions on capital-account transactions, including developed countries
- efforts will be made to further facilitate trade settlement, develop the China international payments system
- other possible measures inc easing restrictions on overseas investment by individuals, developing the panda bond market and encourage outward investment/lending
- medium term goals for CNY internationalization inc joining the IMF’s SDR basket of ccys and achieving capital account convertibility
Rome wasn’t built in a day and nor it seems will China’s wish to see full yuan domination
Full Yuan convertibility has no precise timetable says PBOC
