China’s capital flow clampdown impacts bitcoin market

Author: | Published: 26 Jan 2017

The fate of bitcoin is now closely linked to the Chinese yuan as authorities set their sights on regulating capital flows and currency reserves

The value of the yuan has been under pressure since late 2015. From January 4 2016 to December 30 2016, the exchange rate between the US dollar and the yuan rose from 6.50 to 6.93. Many market observers predict that it will rise to 7 and beyond within a short period of time after the Chinese New Year (which falls this year on January 28). The economy is slowing down and the financial system is flush with cash. Attraction for foreign investment into China is waning while Chinese enterprises and well-to-do citizens continue on their buying spree of foreign assets, from multinational companies, football clubs, real estate property, investment products and commodities to luxury and daily consumer goods. In the first three quarters of 2016, China's...


 

 

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