Economist

Richard Iley

Macroeconomics

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<p>The Chinese authorities' substantial tightening of capital controls over the last 12-15 months has helped stabilise the country's balance of payments and the accelerating drawdown of FX reserves. In turn, helped by generalised USD weakness, the CNY has managed to stage a modest rally against the US. <strong>But a deep dive into China's balance of payments shows that it far too early to sound the all clear. </strong></p>
<p>A key component of China's financial account are 'errors and omissions'. Essentially a statistical…</p>
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The Chinese authorities' substantial tightening of capital controls over the last 12-15 months has helped stabilise the country's balance of payments and the accelerating drawdown of FX reserves. In turn, helped by generalised USD weakness, the CNY has managed to stage a modest rally against the US. But a deep dive into China's balance of payments shows that it far too early to sound the all clear. 
A key component of China's financial account are 'errors and omissions'. Essentially a statistical…


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