Trial to Keep Forex Overseas

China will allow exporters to keep some foreign currency income overseas on a trial basis from October in a bid to balance international payment.

The one-year trial will be launched in Guangdong, Shandong and Jiangsu provinces as well as Beijing, the State Administration of Foreign Exchange announced yesterday on its website.

SAFE will grant approval to companies which qualify, and they will receive a quota that allows them to maintain the foreign exchange overseas.

Chinese companies are now asked to repatriate income earned overseas although they aren't required to convert all their foreign exchange into yuan.

"For China, the trial can offer an extra option to adjust international payments," SAFE said.

"Meanwhile, it can help companies better use their capital and cut foreign exchange losses and costs of currency transfer for companies, especially those that have frequent cross-border trade income and payment."

(By Zhang Fengming)

Source: Shanghai Daily

Editor: Jessie Huang