This comes from Forbes and thus far no one else has picked up the story:
The People’s Bank of China , the central bank, has just ordered commercial banks to halt cash transfers.
This notice, for instance, appears on the online portal for Citigroup's Citibank unit for its China customers:
So today’s “system maintenance” notice is a sign of a fundamental problem.impending default of the Credit Equals Gold wealth product scheduled for January 31. Analysts are worried that the failure, if it occurs, will cause a China-wide panic.Banks, in short, need cash to rollover ever-increasing amounts of nonperforming loans and wealth management products. This month, cash needs are even higher than normal because of the
Perhaps more important, the Federal Open Market Committee is holding its next meeting on January 28-29 so there could be an announcement on the 29th on the trimming of bond purchases.The suspension of FX transactions means that speculators will not be able to dump renminbi and buy dollars.Fed Chair Bernanke’s words on tapering, beginning in May of last year, shook emerging markets. A FOMC announcement this time could undermine China, especially because of the darkening perceptions about that country.