BIS publishes paper on China’s capital controls

Do China’s capital controls still bind? Implications for monetary autonomy and capital liberalization is written by Guonan Ma, senior Asian economist at the BIS, and Robert McCauley.

The authors said: “Although the Chinese capital controls have not been watertight, we find sustained and significant gaps between onshore and offshore renminbi interest rates and persistent dollar/renminbi interest rate differentials during the period of a de facto dollar peg.”