1. The degree of currency convertibility has been strengthened.
1996 China has achieved full convertibility of current account. At the same time, according to the needs of reform and opening up and economic development, the capital account control will be gradually relaxed in accordance with the principle of "inflow first, outflow later, long-term first and short-term".
1994 the reform of foreign exchange management system has established the basic framework of the current RMB exchange rate system and initially established the dominant position of the market in the allocation of foreign exchange resources. The main contents of the reform of foreign exchange management system are: implementing the system of bank settlement and sale of foreign exchange, canceling the payment and retention of foreign exchange, canceling the planning and approval of foreign exchange use, and implementing the system of bank settlement and sale of foreign exchange in the current account of domestic institutions; Implement a single and managed floating exchange rate based on market supply and demand; Establish a unified and standardized inter-bank foreign exchange market. Designated foreign exchange banks can determine their own listed exchange rates and buy and sell foreign exchange to customers in accordance with regulations. Since the merger of exchange rates, the foreign exchange market has operated normally and stably, which indicates that the formation of RMB exchange rate has initially realized marketization.
In the past two years, the China government has actively cultivated the foreign exchange market and steadily promoted the process of RMB convertibility. In order to gradually improve the RMB exchange rate formation mechanism, the pilot scope of forward foreign exchange settlement and sale business was expanded, and forward business under foreign debt was allowed; Extend the trading hours in the inter-bank foreign exchange market; Relax foreign exchange control appropriately, allow all kinds of enterprises to open current account foreign exchange accounts, and keep foreign exchange within the limit of 20% of current account foreign exchange income in the previous year; Reform the current foreign exchange settlement and sale system and simplify the procedures for import and export verification; Standardize non-trade foreign exchange sales and payment vouchers; Relax restrictions on the use of foreign exchange by enterprises and residents. The convertibility of RMB has been further improved.
In the future, China monetary authorities will be able to relax the restrictions on cross-border capital transactions selectively and step by step. The so-called selective and step-by-step, mainly refers to the selection of capital trading projects that have a positive effect on promoting economic growth and improving the level of opening up, and the accompanying negative effects can be controlled, and they will be piloted first and gradually expanded. In the near and medium term, it is mainly to relax the restrictions on mature capital projects on the basis of further meeting the foreign exchange demand of current accounts. Including speeding up the implementation of the "going out" strategy and supporting domestic enterprises' overseas direct investment; Conditionally approve some foreign-funded multinational companies to transfer temporarily idle funds to overseas operations, and support Chinese-funded multinational companies to supplement their overseas corporate capital or working capital; Allow citizens and non-resident individuals who have legally emigrated abroad to remit their legally owned assets in China according to regulations; Selectively introduce international financial institutions to issue RMB bonds in China; Explore the introduction of domestic qualified institutional investors system; Allow qualified non-bank financial institutions to invest in overseas securities, and so on. After the introduction of the above measures, it is just around the corner for China to realize the basic convertibility of RMB under capital account.