China tightens gold import quotas to ease dollar outflow - FT

The Financial Times (FT) reports that according to traders and bankers, the Chinese authorities have taken steps to curb gold imports in yet another attempt by Beijing to stem capital outflows.

The People’s Bank of China (PBOC) did not immediately respond to a request for comment.

Key Quotes:

“The hit to gold imports comes as China tightens restrictions on overseas deals by state-owned companies in an effort to limit capital outflows that has seen the renminbi fall to its lowest against the dollar in eight years.”

“Quotas for importing gold have been cut during quarterly assessments this year. Banks also have dollar quotas, some of which must be used when buying gold.”