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this article talks about the balance of payment in china, and also explains how that for the first time in a very long time (1999) the country is experiencing more money leaving the country than enters it.

The article is talking about China which starts as for the first time since 1998 more money leaves China than enters it mainland China can now boast over 1m wealthy citizens (qianwan fuweng) each with over 10m yuan ($1.6m), says the latest edition of the "Hurun Report", which keeps track of China's capitalist high-roaders. But the mainland seems to be having trouble keeping them. According to the report, published on July 31st, more than 16% of China's rich have already emigrated, or handed in immigration papers for another country, while 44% intend to do so soon. Over 85% are planning to send their children abroad for their education, and one-third own assets overseas.

The areticle is about the Reserve Bank of India stopped listening to lullabies of praise on its exemplary handling of monetary and exchange rate policies. The current policy keeps piling up useless reserves, offers wholly avoidable arbitrage opportunities to patriotic residents and even more patriotic non-residents, hikes interest rates, depresses growth and widens the fiscal deficit. People are raising dollar debt and not bothering to cover forward. They are confident that the rupee would either appreciate against the dollar or at least hold steady till repayment time.When dollars come into India, they have to be converted into rupees. This conversion bloats our forex reserves and injects rupees into the system. If all the rupees created as a result of dollar inflows were to be allowed to add to the money supply, that would reduce interest rates and also create the potential for inflation. So the RBI sterilises such rupee injections by selling government bonds and mopping up rupees from the system. The increased supply of government bonds brings down their price, hiking the yield. Thus, sterilisation pushes up interest rates.