Posted by shaun gibson on January 27, 2014
Strange one this and just breaking news, remember my blog about America stopping LARGE or any real big wire cash transfers abroad, well Chin have just done the same. This was my blog in October 24th last year http://prayingforoneday.wordpress.com/2013/10/24/chase-hsbc-others-nationwide-limit-cash-withdrawals-ban-international-wires/ There seems to be a shortage of real money around the World just now. Only last week HSBC told customers to PROVE why they were taking money out of their accounts and making it near impossible to leave the bank due to “new charges” Here is the article http://prayingforoneday.wordpress.com/2014/01/25/hsbc-tell-customers-to-prove-why-they-wan-to-withdraw-money/ What does this mean for you and me, well at this stage I would say not a lot but if this trend continues I can see all of us struggling to get our money we own out of the banks. I don’t know what to make of all this. http://www.forbes.com broke the story but check the story now, http://www.forbes.com/sites/gordonchang/2014/01/26/china-halts-bank-cash-transfers-2/ I will leave other links to this story below. Actually as I looked at other sites I notices the URL was there but a notice of “Story not available” on a few sites. If interested go look yourself. This did happen, why are websites now not covering the story? There is a connection to all these bank and money issues. I will keep on the ball and see what I can get from it all. Anyone smarter than me? Please, give me a hand
The People’s Bank of China , the central bank, has just ordered commercial banks to halt cash transfers.
In short, there will be a three-day suspension of domestic renminbi transfers. There will also be a suspension, spanning nine calendar days, of conversions of renminbi to foreign currency.
The specific reason given—“system maintenance” at the central bank—is preposterous. It is not credible that during the highest usage period in the year—the weeklong Lunar New Year holiday beginning January 31—the central bank would schedule an upgrade and shut down cash transfers.
A better explanation is that the country’s banking system is running dry. Yes, there is an increased need for money in the run-up to and during the Lunar New Year holiday, but that is only a small factor. After all, central bank officials knew this spike in demand was coming—it occurs every year at this time—and a core function of central banks is to manage seasonal liquidity fluctuations. Moreover, the holiday has not started yet, and the PBOC, as that institution is known, could have added more liquidity to meet cash needs.
Thanks to: http://prayingforoneday.wordpress.com