2021-10-08

China Restricts Retail FX Trading

I don't pay much attention to these stories these days because I can guess where this is headed: FX volatility and a much lower yuan. Contradictory news that indicates the trend is stopping or reversing is worth reading. The real crisis signal, if this ever comes, will be news that China is restricting the purchase of precious metals. At that point it may be too late to go long USDCNY. I don't think that is likely by the way, but that is a high profile way of exiting the yuan without crossing the border. Another signal would be tightening of gold import quotas again.

ZH: China's Largest Bank Restricts Forex And Commodity Trading For Retail Investors

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