[2015-12-30] Suspension Of Chinese Yuan FX Trading To Set Off Bitcoin Rally

[jdebunt]

If there was anyone left on this planet who thought there was nothing going on with the Chinese economy you might want to rethink that statement very soon. Over the past few months, the Chinese Yuan has been losing value, and things have taken a turn for the worse now that China suspended some foreign banks from FX trading. Capital outflows for the Chinese Yuan are getting out of hand, as investors are looking for a different safe haven.

http://bitcoinist.net/suspension-of-chinese-yuan-fx-trading-to-set-off-bitcoin-rally/

[medUSA]

<snip> now that China suspended some foreign banks from FX trading. Capital outflows for the Chinese Yuan are getting out of hand, as investors are looking for a different safe haven.
http://bitcoinist.net/suspension-of-chinese-yuan-fx-trading-to-set-off-bitcoin-rally/

The writer have little understanding of what the PBOC is trying to do. If he does, he will realise that this has little effect on Bitcoin trading in China. PBOC suspended FX trading of 3 banks because they do not wish to see arbitrage between the onshore and offshore yuan, not necessarily halting capital outflow. They would like to see a more natural converging of the those rates. Banks which are involved in such trades with market moving volumes are not going to convert yuan to bitcoin to be sent offshore.