China relaxes foreign exchange control
(Xinhua)
Updated: 2006-04-14 09:56 China's central bank
announced on Thursday the relaxation of controls on foreign exchange accounts,
simplifying approval procedures for foreign exchange payments in the service
trade, and procedures for individuals to buy foreign currencies.
The People's Bank of China will also allow qualified banks to pool capital in
Renminbi, the Chinese currency, from domestic institutions and individuals for
overseas investment in products with fixed returns under an unspecified quota
system.
It will allow fund management firms and other securities institutions to
invest in a combination of stocks and other overseas securities using foreign
currencies gathered from domestic institutions and private sources.
The bank said it would allow qualified insurance institutions to buy foreign
currencies for investment in overseas products with fixed returns and money
market instruments.
The amount of foreign currency purchased would be under a "certain portion"
of the total assets of the insurance institution.
The bank said the new policies would be implemented in cooperation with other
departments, while closely monitoring international payments, and readjusting
policies to prevent risks and safeguard the country's economic and financial
security.
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