In a move that’s officially meant to tighten money supply, to counter rising inflation, China has banned all domestic businesses from taking loans from foreign banks.

The specific type of loan is called RMB (RenMinBi, a type of international currency). The People’s Bank of China, told all other banks that it would stop accepting applications for direct offshore borrowing.

An unnamed source said one of the reasons China is banning RMB loans, is because they have no control over the interest rates of those loans.

China has already tightened lending by Chinese banks, again, to try and control inflation by restricting the amount of money in the consumer market.  The RMB loans are controlled by foreign banks, and have increased their lending in China since the beginning of the year.

An official with the People’s Bank of China said they are going to come up with a system in which they can influence the lending of foreign money in China.