Under a trial launched by Chinese financial regulators, certain multinational corporations including oil giant Royal Dutch Shell PLC will be allowed to convert their RMB funds into other currencies more freely, reported Caixin.
The first part of the trial, which will take place in Beijing and the southern tech hub of Shenzhen, will involve major multinational firms with relatively high credit ratings and aims to facilitate their cross-border use of funds, according to a joint statement published by the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) on Friday.
Under the trial, the multinationals will be able to buy foreign currencies at will within certain limits and deposit the money into the major domestic bank accounts of their cross-border cash pools for overseas payments, the statement said. Industry insiders say the new rule may mark a breakthrough in the opening up of China’s capital account.
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