Restrictions on repatriation of funds is among the worst fears of foreign investors. China’s move in this direction, unless reversed, could see funds flow increase to other Asian markets such as India
Reserves fell by USD 12.3 billion in January to USD 2.998 trillion, compared with a drop of USD 41 billion drop in December.
Geoff Lewis of Manulife Asset Management believes capital outflows from China have indeed peaked, referring to the Chinese Central Bank chief's comment on Sunday that there are no plans to tighten capital controls
Against a backdrop of capital controls, financial uncertainty and increasing material deprivation, displaying wealth in Greece has become a big faux pas.
While the picturesque Santorini Island, historic sites, beautiful sparkling sea and the vine-shaded restaurants hold a major appeal, the fear of a 'Grexit' is making the tourist community nervous.
The battered currency has continued in its downward spiral despite the Central Bank of Russia's (CBR) astonishing 650 basis-point rate hike late Monday.
The Reserve Bank of India's outgoing Governor Duvvuri Subbarao on Thursday emphasised the central bank's policy is not to resort to capital controls but said it must maintain its focus on stabilising markets.
Indian benchmark government bonds slumped to 21-month lows on Friday and posted their worst week in four-and-a-half years, as the rupee slid to a record low despite policy makers' efforts to defend the currency.
In what can only be seen as a panic move, the Reserve Bank of India (RBI) today reversed the long-term secular trend of easing capital controls by severely limiting the amount of money citizens can remit abroad, and businesses can invest in foreign ventures.
Developing countries on Saturday pushed back hard against attempts to restrict how they manage money pouring into their fast-growing economies and said rich nations should reconsider their own policies instead.
The IMF's first-ever endorsement of capital controls, contained in a document released on Tuesday, has exposed internal tensions so sensitive that some member countries even objected to the title.
2010 saw a lot of fund flows into emerging markets, with most markets outperforming. However, Adrian Mowat, Chief Asian and Emerging Equity Strategist at JP Morgan said he expected 2011 to be a choppy year for emerging markets. "Emerging markets may face serious macro economic issues," he said.