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It's being reported that China's central bank has drafted plans for a new tax on foreign-exchange transactions that would help curb1 currency speculation2.
据报道,中国人民银行已计划对外汇交易征税,以控制货币投机活动。
Bloomberg has reported that the initial rate of the so-called Tobin tax may be kept at zero to allow authorities time to refine the rules.
The report adds that the tax is not designed to disrupt hedging and other foreign-exchange transactions undertaken by companies.
The Tobin tax takes its name from US economist3 James Tobin, who in 1972 suggested taking a cut of foreign-exchange trades to limit currency speculation.
It is said the potential rules still need government approval.
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