SAFE pledges broader forex market opening in H2

Summary

China's forex regulator announced on 2 August that it will press ahead with institutional opening-up in the foreign exchange sector during the second half of the year. The State Administration of Foreign Exchange (SAFE) outlined plans to streamline trade facilitation, introduce a package of measures to optimise current account forex management,

and implement high-level opening-up policies for cross-border trade. The move also aims to bolster Shanghai's development as an international financial centre.

Commentary

The latest commitment to widen the current account will benefit small and medium-sized exporters in New Zealand, offering more efficient cross-border trade settlement and expanded access to forex hedging tools. It is also expected to enhance the efficiency of cross-border e-commerce payments. Additionally, the nationwide rollout of the domestic and foreign currency cash pooling policy for multinational companies will provide New Zealand firms operating in China with greater flexibility in fund allocation.

Nevertheless, businesses should remain mindful of the market-driven fluctuations in the RMB exchange rate and manage their forex exposure proactively.

Keywords: foreign exchange, institutional opening-up, trade facilitation, cross-border investment and financing, forex management, Shanghai international financial centre

Summary in Chinese | 摘要

国家外汇管理局8月2日表示，下半年将继续稳步扩大外汇领域制度型开放，推动贸易便利化改革，出台优化经常项目外汇管理一揽子措施，推广跨境贸易高水平开放政策，并支持上海国际金融中心建设。

Commentary in Chinese | 评论

中国经济账户开放进一步推进，新西兰中小出口商将受益于更便捷的跨境贸易结算和外汇避险工具，跨境电商收付效率提升。同时跨国公司本外币资金池政策全国推广，在华纽企资金调配更灵活。但人民币汇率市场化波动仍需主动管理。

关键词: 外汇, 制度型开放, 贸易便利化, 跨境投融资, 外汇管理, 上海国际金融中心

Source: China.org.cn