Central bank imposes new capital controls to staunch outflows

China’s central bank announced Tuesday that Chinese companies can now exchange yuan for foreign currencies only for approved business purposes, such as paying for imports or approved foreign investments, The Wall Street Journal reported. Some of China’s largest lenders, including Bank of China and China Citic Bank, are also beefing up their internal checks on large foreign-exchange conversions by corporate clients, according to Chinese banking executives. The moves are intended to make it more expensive for investors to pressure the yuan to weaken against the US dollar, which could prompt greater capital flight and complicate government efforts to boost spending and bolster growth.