if to go through the exchange rate, turn all RMB into USD or whatever else, don't you stand to lose over the exchange rate from the point the RMB is deposited? a shrinkage between the time of 8.32 and the time of catching up to HKD to USD rate...?
if so, would the CD rate from foreign bankbe high enough justify such move?
the government is trying to reduce the foreign currency reserve. but if the chinese currency start out flow, that would be just the opposite of their intension. so the pain would not be just for chinese banks...if you think this actually would happen among chinese citizens. of course for those corrupted who took in others' money and on their way out to hide, that's a different story. but i doubt the chinese banks will actually let a free flow going without monitoring up to a certain amount...
