PBoC backs move to smoothen flow of money
BEIJING: Policymakers support opening financial markets for capital and investment to flow both in and out of the country, said central bank deputy governor Pan Gongsheng.
China would push ahead on oversight and enforce existing regulations on foreign exchange, he said on Sunday.
A healthy foreign-exchange market would help all participants, said Pan, who also heads the state administration of foreign exchange, which executes currency policy.
With the United States tightening looming and the People’s Bank of China (PBoC) interest rate at a record low, China’s capital outflow pressures are poised to intensify this year.
The central bank has stepped up scrutiny of requests to move money out of the country since last year, and it’s also speeding reforms to open up the domestic bond market to lure more foreign investors.