From The Wall Street Journal:
China’s financial regulators late Friday announced measures aimed at offsetting inflation and other risks associated with its surging economy — and the one-way flow of money into the country the growth has encouraged.
The State Administration of Foreign Exchange said that starting Feb. 1, its citizens will be permitted to exchange yuan for up to $50,000 per year in foreign currency, a sharp rise from the $20,000 limit now.
In a separate move, the People’s Bank of China, the central bank, also said it would tighten credit with its fourth increase in the reserve requirement in less than a year, a technical move meant to soak up money in the financial system and crimp bank lending.[Full Text]
