China’s SAFE Denies Reports on Flows Stricter Administration
- The Chinese yuan was under the pump last year, falling by nearly 6.5% against the American currency.
The State Administration of Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term's (SAFE), China's foreign exchange regulatory agency, on Friday denied media reports that it has introduced fresh measures to curb rising outflows of capital, following recent rounds of currency devaluations.
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Earlier today, Bloomberg News quoted people familiar with SAFE’s affairs as saying: "China has asked some banks to stop processing cross-border yuan Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term until they balance inflows and outflows, as authorities step up a campaign to curb a record amount of money leaving the nation in the local currency."
In a similar report, Reuters said new verbal directions were given to banks on Wednesday, requiring them to show at the end of every month that the amount of outgoing yuan matches the sum that comes in. The new guidance from the currency regulator, which functions as a bureau under the People's Republic of China, will apply to transactions involving both companies and individuals.
However, SAFE denied in a statement that the move amounted to a capital control as it did not restrict transaction volumes and did not require balance between inflows and outflows.
Dwindling reserves
The SAFE’s new rules, if any, would mainly target the practice of over-invoicing of exports which companies use to hide capital outflows, the Bloomberg wrote Thursday, quoting unnamed sources familiar with the matter.
The outflows are partly responsible for China's dwindling foreign currency reserves, which were once running at around $4 trillion, and are now down to $3.011 trillion at the end of December 2016, according to a recent SAFE report. The country's vast foreign exchange reserves, the largest in the world, had lost $320 billion last year, according to media estimates.
The Chinese yuan was under the pump last year, falling by nearly 6.5% against the American currency, and currently sits at its lowest point since 2008.
The State Administration of Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term's (SAFE), China's foreign exchange regulatory agency, on Friday denied media reports that it has introduced fresh measures to curb rising outflows of capital, following recent rounds of currency devaluations.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
Earlier today, Bloomberg News quoted people familiar with SAFE’s affairs as saying: "China has asked some banks to stop processing cross-border yuan Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term until they balance inflows and outflows, as authorities step up a campaign to curb a record amount of money leaving the nation in the local currency."
In a similar report, Reuters said new verbal directions were given to banks on Wednesday, requiring them to show at the end of every month that the amount of outgoing yuan matches the sum that comes in. The new guidance from the currency regulator, which functions as a bureau under the People's Republic of China, will apply to transactions involving both companies and individuals.
However, SAFE denied in a statement that the move amounted to a capital control as it did not restrict transaction volumes and did not require balance between inflows and outflows.
Dwindling reserves
The SAFE’s new rules, if any, would mainly target the practice of over-invoicing of exports which companies use to hide capital outflows, the Bloomberg wrote Thursday, quoting unnamed sources familiar with the matter.
The outflows are partly responsible for China's dwindling foreign currency reserves, which were once running at around $4 trillion, and are now down to $3.011 trillion at the end of December 2016, according to a recent SAFE report. The country's vast foreign exchange reserves, the largest in the world, had lost $320 billion last year, according to media estimates.
The Chinese yuan was under the pump last year, falling by nearly 6.5% against the American currency, and currently sits at its lowest point since 2008.