Reuters is reporting that China’s foreign exchange regulator SAFE has issued new rules simplifying procedures for individuals exchanging foreign currencies, but keeping net purchase quotas unchanged.
In what Reuters is calling a minor reform, the State Administration of Foreign Exchange (SAFE) said that financial outlets designated by banks for such exchanges will no longer need its approval to conduct such business, effective immediately.
SAFE, a unit of the central People’s Bank of China, also required banks to tighten supervision of foreign exchange management while preventing possible money laundering, according to the new rules.
According to SAFE, the new rules which are replacing related regulations promulgated in 2007 and 2008,
will not have any impact on the normal foreign currency exchange activities for individuals, including their annual exchange quota of an equivalent of $50,000.
China has been reforming its complicated and rigid administrative approval mechanisms for financial activities, abolishing some approval requirements and replacing them with a registration system in which operators just need to register for conducting the businesses.