China News Service, August 1, According to the website of the State Administration of Foreign Exchange, on July 31, the State Administration of Foreign Exchange held a video conference on foreign exchange management in the second half of 2020. The meeting proposed to severely crack down on illegal foreign exchange activities such as underground banks and cross-border gambling with a "zero tolerance" attitude, and maintain the healthy order of the foreign exchange market.
The meeting believed that since 2020, the foreign exchange management department will focus on supporting the epidemic prevention and control and the overall situation of economic and social development, further deepen the reform and opening up of the foreign exchange field, effectively prevent and control the risks of cross-border capital flow, and effectively maintain the country's economic and financial security, achieving remarkable results. Mainly include the following aspects:
—— Go all out to support epidemic prevention and control and economic recovery. Establish a "green channel" for foreign exchange policies, and comprehensively simplify the handling of foreign exchange business such as the import and export of epidemic prevention materials, capital account income and cross-border financing, and effectively meet the foreign exchange needs related to the epidemic.
—— Reform and opening up in the foreign exchange sector continued to deepen. On the basis of implementing the 12 facilitation measures determined by the executive meeting of the State Council, we will further expand the pilot areas and business scope for facilitation of foreign exchange receipts and payments. Accelerate the reform of the foreign exchange system such as the Shanghai International Financial Center, the Guangdong-Hong Kong-Macao Greater Bay Area and the Hainan Free Trade Port to serve the country's major regional development strategies.
——The foreign exchange market operates smoothly. Further improve the two integrated management framework of "macro prudence + micro supervision" in the foreign exchange market, severely crack down on violations of laws and regulations in the foreign exchange field, and effectively block the risk of external shocks. Fifth, the operation of foreign exchange reserves is prudent and stable. The scale of foreign exchange reserves has remained above US$3 trillion.
The meeting laid out key tasks for foreign exchange management in the second half of 2020, including deepening reform and opening up in the foreign exchange sector, and coordinating support for normalized epidemic prevention and control and economic and social development. Implement various foreign exchange facilitation measures without compromise, expand the pilot program for facilitation of trade receipts and payments, and promote the electronic filing of foreign exchange payments for trade in services. Explore the reform of cross-border investment management of private equity investment funds. Continue to steadily expand the two-way opening and interconnection of financial markets.
The meeting requested that the foreign exchange sector continue to fight a tough battle to prevent and resolve major financial risks and prevent cross-border capital flow risks. Strengthen the macro-prudential management of cross-border capital flows, improve the supervision of the foreign exchange market, and protect the legitimate rights and interests of foreign exchange consumers and investors. Severely crack down on illegal foreign exchange activities such as underground banks and cross-border gambling with a "zero tolerance" attitude, and maintain the healthy order of the foreign exchange market.
The meeting also emphasized to improve the operation and management of foreign exchange reserves with Chinese characteristics to ensure the safety, flow, and value preservation and appreciation of assets. Strengthen research on major issues such as the reform and development of foreign exchange management during the "14th Five-Year Plan" period, deepen the reform of decentralization, management and service, improve the multi-level balance of payments statistics system, and promote the construction of "digital external control" and "safe external control".