The China Banking Regulatory Commission called on foreign banks to localize business units to monitor yuan trading risks as the country moves to liberalize the foreign exchange system. In a statement distributed Wednesday, the banking regulator noted that foreign banks tended to monitor their foreign-exchange system risks from banking offices outside the country, which it said was becoming less feasible. The statement suggested no timetable for compliance, and also offered no indication the regulator expected the yuan's actual exchange rate to become more flexible. The statement, which was published only in Chinese, called on foreign bankers to "fully understand China's financial market."
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