PBoC professor calls for tax on currency conversions

A professor associated with the People’s Bank of China (PBoC) has suggested that China levy a tax on conversions of foreign currencies into renminbi, Dow Jones reported. Wang Yong, a professor at the PBoC’s training institute in Zhengzhou, Henan, wrote in an article in the state-run Shanghai Securities News that such a move could help rein in hot money inflows prompted by an appreciating renminbi, relatively high interest rates in China and excessive global liquidity. "Once it’s found these policies are feasible…China should roll out them as soon as possible," Wang wrote. China has repeatedly expressed concerns about inflows of speculative capital contributing to inflationary pressure in the country.