Improving Administration of the Foreign Exchange Settlement and Sale Business Synthetic Position, fa

In order to further standardize the administration of foreign exchange settlement and sale synthetic position and facilitate the promotion of foreign exchange settlement and sale business in banks, SAFE currently released the Circular of the SAFE concerning the issues on the administration of foreign exchange settlement and sale business synthetic position for banks (Huifa [2010] No.56) (hereinafter referred to as Circular). This Circular shall take effect as of the date of promulgation.
The Circular makes systemic re-organization on seven regulatory documents concerning foreign exchange settlement and sale synthetic position for banks. The Circular specifies the administration principles of foreign exchange settlement and sale synthetic position, including quota management, accrual basis, daily-based assessment supervision and accounting verification. The Circular also makes clearer statement of the synthetic position application, adjustment and specified administration measures. The current quota of the foreign exchange settlement and sale synthetic position for banks remains the same.
The Circular facilitates further improvement of the transparency of foreign exchange administration and simplified administration process, deeper comprehension and implement towards administration regulation for the banks to boot.