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China SAFE: Hot Money Calculations Are Inaccurate, Misleading
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Calculations of the amount of speculative "hot money" pushing up Chinese foreign exchange reserves are both inaccurate and misleading, the State Administration of Foreign Exchange (SAFE) said Tuesday.
However, SAFE acknowledged that some speculative money has come on shore in recent years and that capital account controls are needed as a result.
But it also said that common methods of calculation, including subtracting China's trade surplus and foreign direct investment from the increase in foreign exchange reserves to estimate hot money inflows, is "not scientific and its conclusions are also misleading."
"When we analyze the increase in foreign exchange... Full Story |
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Submitted Jan 19, 2010 8:14pm
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