Foreign exchange trading is always akin to gambling. But, in China, gambling may be a way of trading foreign exchange: one way to get around the country’s currency controls is to take a trip to the casinos of Macau.
Macau is not just about currency conversion: it has made some efforts to diversify into Vegas-style shows. But, when the chips are down, it is only the gaming tables that investors are interested in, in the hope of insights into China’s flows of money.
China’s currency is rapidly becoming globally important. Figures yesterday showed the renminbi again passing the euro as the second currency for trade finance, although the dollar still dominates with 80 per cent of lending. China is also on a slow boat to fully liberalised exchange rates.