The paper argues that China's capital controls remain substantially binding. This has allowed the Chinese authorities to retain some degree of short-term monetary autonomy, despite the fixed exchange rate up to July 2005. Although the Chinese capital controls have not been watertight, we find...

This paper examines the structural characteristics of China's inter-bank foreign exchange market and evaluates the prospects for the renminbi to become a regional lead currency. While China has made considerable progress in reforming her foreign exchange market and thereby set the preconditions...