Does a Tobin Tax on Foreign Currency Trades Make Sense for China?

The problem with introducing a tax on currency transactions in China: It’s probably too late.

Taxing foreign exchange transactions – sometimes known as a Tobin tax – aims to limit short term currency transactions by making them more costly. That may appeal to China, where a financial regulator said this week a tax is an option as the central bank fights to reduce opportunities to sell yuan. READ MORE