The State Administration of foreign exchange issued the guidelines on foreign exchange business under current account (2020 Edition) on December 31 to effectively facilitate market entities to handle foreign exchange business under current account, so that market entities can "understand, use and operate smoothly".
This is the first time that China has systematically sorted out the current account foreign exchange policy, and it is also the integration of reform and innovation, system improvement and technology upgrading in the field of foreign exchange.
Liu Bin, director of the current account management department of the safe, introduced that the guidelines cover trade in goods and services, as well as all current account foreign exchange businesses of individuals, insurance institutions and Payment institutions. 29 normative documents were abolished simultaneously, and unnecessary business processes and materials were streamlined, so as to make market participants "understand, use and operate smoothly".
"The guideline adheres to the principle of current account convertibility, facilitates the handling of real and compliant foreign exchange business, does not involve substantial changes in existing policies and major adjustments, and is conducive to creating a long-term stable and predictable institutional environment." Liu Bin said that the guidelines comprehensively integrate the existing laws and regulations on foreign exchange business under current account, realize the "complete list of current account foreign exchange policies, handle all kinds of documents, and make them clear at a glance", so as to ensure that the policies and regulations are unified, transparent, concise and clear.
The relevant person in charge of the safe said that the safe will continue to deepen the reform and opening up of the foreign exchange field, timely revise and update the contents of the guidelines according to the progress of foreign exchange management reform, continuously optimize the business environment, stimulate the vitality of market entities, and promote high-quality economic development.