It's being reported that China's central bank has drafted plans for a new tax on foreign-exchange transactions that would help curb currency speculation.

Bloomberg has reported that the initial rate of the so-called Tobin tax may be kept at zero to allow authorities time to refine the rules.

The report adds that the tax is not designed to disrupt hedging and other foreign-exchange transactions undertaken by companies.

The Tobin tax takes its name from US economist James Tobin, who in 1972 suggested taking a cut of foreign-exchange trades to limit currency speculation.

It is said the potential rules still need government approval.

For more on this topic, CRI's Spencer Musick earlier spoke with John Ross, senior

fellow with the Chongyang Institute for Financial Studies at Renmin University.

(From CRIENGLISH.com)