China's record capital outflows put Tobin Tax back on agenda

Beijing

CHINA has for the second time this month raised the possibility of taxing foreign exchange transactions as record capital outflows from the world's second largest economy put pressure on the yuan.

"We are currently studying measures including Tobin Tax, unremunerated reserve requirement and handling fees for foreign exchange trading to suppress any abnormal and significant flows of short-term funds that seek arbitrage," Wang Xiaoyi, deputy administrator of the State Administration of Foreign Exchange(SAFE), said on Thursday at a press conference in Beijing.