Chinese forex regulator promises greater opening

Forex Distribution

A recent report from Reuters, citing the Chinese foreign exchange regulator, reveals that China is looking forward to continuing the expansion of its financial market opening. This will include a new set of exploring reforms regarding the rules governing cross-border investment management.

Looking forward to more cooperation between markets

The State Administration of Foreign Exchange (SAFE) issued a statement this Friday, revealing that the plan is to push to “steadily expand two-way opening and interconnectivity of financial markets.”

Over the past weeks, China began to relax its restrictions, in an attempt to offer people access to its financial markets, after restricting it for the last months, amid the tensions with the United States, including a new set of rules to scrap quotas under two major inbound investment schemes.

Focusing on keeping illegal activities off the market

On Saturday, SAFE talked about fighting to maintain the foreign exchange risks as low as possible, including those involving cross-border capital flows. The administration also issued a zero-tolerance warning towards criminal exchange activities, referring to underground money changers and cross-border gambling, among others.

Despite not offering so many details, the regulator admitted that they are considering implementing “various” foreign exchange facilitation measures. Besides this, expanding trade balance facilitation programs is also a priority, as well as improving the management of foreign exchange reserves and ensure the safety and constant liquidity of assets.

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