Ex-PBOC’s Yu: New yuan fix 'encourages capital flight' from China - RTRS

A former member of the Chinese central bank's (PBOC) Monetary Policy Committee (MPC), Yu Yongding, noted on Tuesday, the new method by which the central bank sets the Yuan reference rate encourages capital flight and has also led to a gradual depreciation of the domestic currency, Reuters reports.

Key Quotes:

"Preventing the yuan from reaching market equilibrium is objectively a rejection of raising the cost of capital flight" 

"It even encourages capital flight."

"We have capital controls as the last line of defense. It is not necessary for us to worry too much about the short-term and volatile depreciation in the yuan"