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China Forex Regulator Aims to Loosen Controls in FX Market

Mar 03 , 2017

China will create an open, competitive domestic currency market and should let a flexible exchange rate mechanism regulate the impact of capital flows and balance international payments, a deputy head of its foreign exchange regulator has said.

Writing in a State Administration of Foreign Exchange (SAFE) publication on Thursday, Fang Shangpu said a so-called "negative list" would be established, based on prudential assessment. Analysts believe such a list would specify sectors of the foreign exchange market that would remain subject to controls.

According to Fang, foreign exchange conversion limits would be gradually phased out for "microscopic areas", a term interpreted by analysts as meaning transactions by individuals and companies. 


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