New Issues Facing Foreign Exchange Management Focus On Capital Flows

The fluctuation of RMB exchange rate and the situation of cross-border capital flows are becoming more and more complicated. How to promote trade facilitation and prevent risks effectively under the new pattern of capital flow has become a new topic facing China's foreign exchange management department.

How to maintain foreign exchange balance and avoid regional and systemic risks is an important challenge for foreign exchange management.

In fact, large and foreign trade, payment and remittance, offshore pfer trading, trade financing and trade credit, export non remittance, split purchase and payment of foreign exchange have all become key items and channels that can easily lead to risks in foreign exchange receipts and payments.

This requires foreign exchange management departments to strengthen the management of high-risk foreign exchange businesses without changing the existing management framework.

General Secretary Xi also said at the G20 summit in Hangzhou that China should build an open world economy and continue to promote trade liberalization and facilitation.

After the reform and opening up in the late 70s of last century, foreign trade has become an important driving force for China's economic development.

Free trade is bound to require trade facilitation. Only by simplifying procedures and procedures, improving institutional arrangements, optimizing the basic environment, reducing trade barriers and facilitating trade, can trade liberalization be promoted.

Obviously, trade facilitation includes

All aspects of the process, and cross-border capital settlement is a key link in the middle.

In the practice of our country, as a management department of cross-border fund settlement, in recent years, the State Administration of foreign exchange has always promoted trade facilitation as an important goal of management. It has launched many reforms and pilot projects, and the facilitation of foreign exchange settlement has increased significantly.

But it can not be overlooked that trade liberalization and facilitation also raise the demand for cross-border capital flow risk prevention and control to a certain extent.

With the continuous expansion of China's opening up to the outside world, enterprises "

On the one hand, the foreign exchange market is more sensitive to changes in the domestic and international economic and financial situation.

Since the second half of 2014, it has been mainly affected by the US withdrawal from monetary easing policy and the entry of interest rate hikes, and China has entered the pitional period of adjustment, such as "labor pains" and the pressure of economic growth.

On the other hand, enterprises will gradually increase their willingness and ability to arbitrage through the foreign exchange market.

After the "8. 11" exchange rate reform in 2015, the two-way fluctuation of the RMB exchange rate became the norm, and the willingness of enterprises to hedge or arbitrage increased, making the uncertainty of cross-border capital flows further increased.

I understand that at present, the measures adopted by the foreign exchange bureau include: first, strictly regulate the management of offshore pfer pactions, and improve the management of early purchase of foreign exchange.

Two, it is to strengthen the monitoring of the business of large, high frequency, remote location and spin off, and carry out special verification for the suspicious suspicious subjects; three, it is required that the banks implement the principles of foreign exchange management exhibition industry, strengthen the authenticity and compliance auditing of the key business trade background; four, vigorously promote inter departmental regulatory cooperation, establish a mechanism for information sharing and supervision cooperation with the departments of Commerce, customs, taxation, industry and commerce, exchange abnormal situation and main body information, and enhance the effectiveness of supervision.

The new pattern of foreign capital flows brought about by changes in the international economic situation requires new ideas for foreign exchange management.

It must be emphasized that the management of foreign exchange businesses which are easy to cause risks should be strengthened so as to create a good foreign exchange market environment for most legitimate trading operators and support their healthy, orderly and sustainable development.

A stable foreign exchange market satisfies the common interests of regulators and regulators.

Therefore, it is not contradictory to strengthen management and facilitate trade facilitation.

While fully meeting the needs of normal and reasonable foreign exchange business and supporting the development of new formats of foreign trade, we should further strengthen the auditing of authenticity and compliance, and crack down on illegal foreign exchange activities at the same time.