Regulator removes forex quotas

The State Administration of Foreign Exchange (SAFE) has removed foreign exchange quotas in current accounts for all domestic companies and other institutions, Xinhua reported (in Chinese). Previously, domestic companies and institutions had been allowed to keep 80% of foreign exchange revenue and 50% of forex costs on the current account. The move, part of continuing foreign exchange reforms, is aimed at giving domestic institutions more freedom and convenience in keeping and using foreign exchange, said a SAFE official. China's US-dollar reserves rose US$266 billion in the first half of 2007, higher than increase for all of 2006.