Greenspan says yuan float now would pose risks

A letter from Alan Greenspan to the US Senate has said that a free-floating yuan could threaten the world economy and destabilise the Chinese banking system if capital controls are removed.

Greenspan said in a letter to the US senate that flotation of the yuan, a move wanted by many in the United States, could cause a heavy flow of capital out of China, undermining Chinese banks and destablising the world economy.

The letter, reported on the Wall Street Journal website on Tuesday, was publis

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