With China's yuan currency near 8 1/2 year lows, companies and individual investors are seeking ways to move their money elsewhere. Tara Joseph reports.
system.scripts. It may seem like China's stature is rising, but it's a different story if you look at the plunging value of its currency. The yuan is hovering near 8 1/2 year lows. But even more worrying for authorities, Chinese citizens are on a dash to move their money out of the country, buying foreign currencies and overseas assets any way they can. From China's slowing economy to Donald Trump's pledge to label Beijing a currency manipulator, the yuan is on very thin ice. And with U.S. interest rates going up, the dollar looks like a far better place for investors to park savings. That's led to China getting very tough on anyone who wants to get their money out of the country. Authorities are swooping in to keep money from leaving, demanding approvals for large foreign currency transfers, and ordering banks to be stricter with customers who want to move funds abroad. Officials are keeping a very close eye on any potential deals in the making abroad. And some sources even tell Reuters that banks are threatening to build a blacklist of anyone who tries to exchange more than ten thousand dollars worth of yuan on consecutive days. Building a wall to keep China's money inside may help preserve its currency reserves, which are quickly shrinking. But it doesn't exactly chime with Beijing's much-touted market reforms that were designed to make it easier for China to do business with the rest of the world. That said, when those reforms were brought in, a flood of money leaving the country was definitely not what the government was banking on.