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China eases rules on forex advances

China eases rules on forex advances

Exporters will be able to progress to increase its foreign currency to pay 25 percent from the current 10 percent, the China Securities Journal reported Wednesday.
The decision was in a circular issued by the State Administration of Foreign Exchange (SAFE) on Tuesday night.
     Importers to postpone the quota of foreign exchange revenue and expenditure also rose to 25 percent of the 10 percent.
    Analysts said the move would help small and medium-sized enterprises to raise funds and improve its cash flow.
     Bankers who ask to remain unidentified, told reporters the financial crisis has caused difficulties, and many businesses will move to more of their capital.
     The State Council, or China's cabinet, demanding a quota of foreign exchange advances in support of a trade meeting of the Standing Committee on December 3.
    Cai Qiusheng Tuesday quoted officials of the State Administration of Foreign Exchange Shanghai Securities News said that the foreign exchange reserves, lower than its peak 1,900,000,000,000 U.S. dollars, as by the end of September.
     According to newspaper reports, companies with good reputation, there is no violation of any foreign exchange control regulations are eligible for the new restrictions.
     In order to prevent "hot money" flows through trade, security, the Ministry of Commerce and the General Administration of Customs jointly issued a circular on July 14 in order to strengthen supervision of cross-border capital flows.
     Bureau of foreign exchange administrative departments at all levels to strengthen inspections to prevent large-scale outflow of cash.

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