China may introduce Tobin tax on FX transactions

A levy on currency trading may be put in place to fight speculation

PBoC: "The initial rate may be kept at zero to allow authorities time to refine the rules"

The People's Bank of China (PBoC) is reportedly planning to introduce a transaction tax on FX trades in an attempt to curb the ongoing speculative trading in its currency markets.

According to a report from Bloomberg, the PBoC has drafted rules on introducing a Tobin tax on currency trading, whereby "the initial rate... may be kept at zero to allow authorities time to refine the rules". People familiar with the matter added that the tax is not designed to disrupt hedging and other FX

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