China’s shadow currency
▻http://thediplomat.com/2013/12/chinas-shadow-currency/?allpages=yes #China #finance #currency
Bankers acceptance notes (BANs) are nothing more than post-dated checks with a bank guarantee. But in China, this prosaic instrument of commerce has become a kind of shadow currency - money supply for the under-reserved banks, out of the central bank’s control. What happens when the world’s second largest economy must resort to passing around IOUs ?