China’s central bank will crack down on capital flight and closely monitor abnormal capital flows as it pushes financial reforms in Shanghai’s free trade zone (FTZ), an senior official said on Wednesday. The South China Morning Post reports Shanghai will strive to expand net money inflows through FTZ accounts, with many Chinese banks offering incentives to encourage individuals and companies to convert US dollars into yuan. Zhang Xin, deputy head of the People’s Bank of China (PBOC) Shanghai headquarters said Wednesday the central bank would step up anti-money laundering efforts, and “under the current circumstances, will strengthen crackdowns on foreign currency flight and step up monitoring abnormal capital flows.” The yuan has lost more than 3% of its value against the dollar since the end of September, pushed down by a resurgent dollar.
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