Skip to content

Chinese Central Bank Banned Using RMB to Acquire Foreign Currencies outside China

Well-known new Chinese news site The Paper recently reported that China’s central bank just announced a new regulation restricting RMB-based RQDII (RMB Qualified Domestic Institutional Investor) investment behavior. RQDII are typically foreign banks or other financial institutions permitted to provide RMB-based financial services in Mainland China. With the new regulation in place, a RQDII investor can no longer transfer RMB to accounts outside China for foreign currency exchanges. The Shanghai Headquarter of the Chinese central bank is now tasked with overseeing cross-border RMB activities. All RQDII doing overseas investments are required to report to Shanghai HQ on their basic information, partner Chinese bank, sources of funds, scale of funds, investment plans, remittance of funds, and overseas positions. In recent years, China has been tightening up the control of overseas RMB flows.

Source: The Paper, May 3, 2018
https://m.thepaper.cn/newsDetail_forward_2108384

Free High Quality Images Download Free Stock Images Download Free Images Free Stock Photos & Images Beautiful Free Stock Photos (CC0) Free stock photos