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Provisional Regulation on Forex Businesses Promulgated: Central Bank
The (PBOC) announced a provisional measure Wednesday on the management of clearing and selling of foreign exchange by authorized banks.

A spokesman for the PBOC said this move aims to adapt the financial industry to the new situation following China's accession into the World Trade Organization, regulate the forex clearing and selling activities of authorized banks, and provide a unified administrative policy for both Chinese and foreign banks in clearing and selling foreign exchange.

The measure provides detailed rules on the market access and exit of forex clearing and selling businesses, the management of revolving capital, accounting, and the management of forex clearing by authorized banks amongst themselves and between their clients.

The measure is applicable to both Chinese and foreign banks in China and qualified banks can apply to run forex clearing and selling businesses.

The measure will go into effect on Dec. 1, 2002.

(Xinhua News Agency November 28, 2002)

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