Property prices across the globe have benefitted from the demand of foreign buyers, read primarily Chinese. Last week Peoples Bank Of China abruptly and unexpectedly changed the foreign currency rules on exchanging yuan for international currency. This will likely impact real estate around the world.
The new rules now require disclosure of the intended use of the yuan being converted. In addition, they must pledge the money won’t be used for the purchase of property, securities, or insurance products. Borrowing or lending on behalf of others is now also prohibited.
Approved uses of funds were restricted to non-investment uses including tourism, schooling, business travel, and medical care.
Implementation details and formal documentation have not been forth coming. For now, at least, everything remains up in the air: Dangerous and demanding all attention; like cutlery just thrust skyward.