New Regulations on Foreign Exchange Accounts for Current Items

Llinks Law Office

In an attempt to further streamline China's foreign exchange regime, the State Administration of Foreign Exchange (SAFE) in September promulgated the Circular on Certain Issues Concerning Further Adjustments of the Policy on the Administration of the Foreign Exchange Accounts for Current Items (the Circular). The Circular was issued together with the Foreign Exchange Accounts for Current Items by Domestic Entities Implementing Rules (the Implementing Rules), and both became effective on October 15 2002. The Circular and the Implementing Rules are designed to further improve the administration of foreign exchange accounts for current items (the foreign exchange current accounts) and reduce the operational costs of both foreign and Chinese-funded domestic entities doing business in China. The Circular and the Implementing Rules do not apply to financial institutions.

Unified Requirements for Domestic Entities