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Beijing's use of foreign exchange reserves caught the attention of currency traders, who have been looking for any sign that officials might allow the Chinese yuan to appreciate in value, as demanded by American, European and Japanese officials.
It imposed controls on agricultural prices, controlled rent, ran the internal trade, restricted foreign travel and the use of foreign exchange, and appointed and supervised the boards of directors of corporations.
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Some are exploring the use of foreign-exchange derivatives.
In examining volatility spillover from foreign exchange market to stock market; we have used the volatility residual series of foreign exchange market as shock emanating to stock market and vice versa.
"They are certainly not getting the level of foreign exchange that they used to in the past," he said.
A lack of foreign exchange impairs companies that use any imported components, which is to say lots of them.
"Our client base is mostly mutual funds," said Marc Chandler, global head of foreign exchange at Brown Brothers Harriman, who doesn't use Superderivatives.
Everyone knows that China's sitting on a vast pile of foreign exchange reserves, and Beijing looks eager to put it to use.
Black-market activity in foreign exchange is prevalent in countries in which convertible foreign exchange is scarce and strict control of foreign exchange exists.
Reserves of foreign exchange are believed to be below $100m.
Tourism is a growing source of foreign exchange.
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