Forex regulator launches inspection on exchange using

A new round of the checking is carried out recently on the use of foreign exchange at the authorized banks. As reported, the State Administration of Foreign Exchange (SAFE) has put forward the plan and the requirements for this purpose so as to enhance monitoring “hot money”. Up to now, the related banks has come to conduct self-inspection, within the period of last whole year. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

The inspection involves the businesses such as the source and the utilizing of banking exchanges, management of external debts, forward settlement and off-shore financial deals. Based on past experiences, those mentioned business are channels used for hot money to sneak into. In which the content of exchange sources is including the business of banking deposit, overseas borrowing and financing, exchange loans, portfolio investment and other related businesses.

At the Congress of the NPC and CPPCC, director of the SAFE Yi Gang said based on the long-term following study, the nation’s cross-border capital flows are generally legal in practice, although there are some cases that irregular money infiltrated in, under cover of current account deals, FDI and individual exchange trading.