Before 1994, China implemented a strict foreign exchange management system. Enterprises and individual residents who use foreign exchange must obtain the approval of the State Administration of Foreign Exchange, and are not allowed to buy and sell foreign exchange freely. 1993165438+10/4 The Decision of the Central Committee on Several Issues Concerning the Establishment of a Socialist Market Economic System adopted by the Third Plenary Session of the 14th CPC Central Committee requires "reforming the foreign exchange system, establishing a managed floating exchange rate system based on market supply and demand and a unified and standardized foreign exchange market, and gradually making the RMB a viable one." According to the spirit of the plenary session, on February 28th, the People's Bank of China issued the Announcement on Further Reforming the Foreign Exchange Management System. Starting from 1994 and 1, the RMB adopts a managed floating exchange rate system based on market supply and demand, and the foreign exchange receipts and payments of Chinese-funded enterprises under the current account are settled by banks. In July 1996, 1, thin foreign exchange accounts of foreign-invested enterprises were incorporated into the bank settlement and sale system; Residents' private remittance standard has been raised to $2,000 per person each time; When residents leave the country to settle down, their pensions, severance payments and pensions can be exchanged for foreign exchange; Restrictions on non-trade routine use of foreign exchange such as entry-exit exhibitions and investment promotion have also been lifted. 1 99665438+February1,China announced the realization of RMB current account convertibility.