PBOC: China to tighten forex management

Central Bank governor Zhou Xiaochuan on Sunday said that China will tighten controls on cross-border capital flows in a bid to stave off disruptions arising from the global financial crisis, Bloomberg reported, citing state media. In a speech delivered to lawmakers, Zhou said the government should not underestimate the impact of the crisis on China as the mainland’s reliance on exports remains relatively high. He said the central bank would strengthen foreign-exchange management, improve its overseas investment system, and use interest-rate tools to stabilize market expectations and keep the currency steady. Despite challenges to the economy, Zhou said China can, "effectively defend against the impact coming from overseas."