According to recent reports, China's Central Bank is considering the introduction of a so-called "Tobin Tax" on foreign exchange transactions. The "Tobin Tax" is a tax proposed by economist James Tobin in 1972 as a way to stabilize capital flows, and would be used by China to curb speculative trading against the Chinese yuan.
No details have been finalized on when the tax would be effective or what the rate would be, although the initial rate is expected to start at zero and would be adjust…