The so-called willing foreign exchange settlement and sale system is not a' compulsory foreign exchange settlement and sale'.
Then what is compulsory settlement and sale of foreign exchange?
Compulsory settlement and sale of foreign exchange means that enterprises and individuals must sell surplus foreign exchange to designated foreign exchange banks, which must sell foreign exchange higher than the positions of the State Administration of Foreign Exchange in the interbank market.
1994, the compulsory settlement and sale of foreign exchange system is not developed here, because the question is when to start to implement the willing settlement and sale of foreign exchange.
So when did the system of willingness to settle and sell foreign exchange begin?
This is a gradual process. The specific timeline and events are as follows:
Since 200 1, China has gradually expanded the autonomy of enterprises to retain foreign exchange by improving the opening of foreign exchange accounts and quota management.
In 2002, the restrictions on the conditions for opening an account were lifted. Any enterprise with foreign trade right or current account foreign exchange income can open a current account foreign exchange account with the approval of the foreign exchange administration department. The account limit is 20% of the foreign exchange income of the current account of the enterprise in the previous year.
In 2004, the account limit was raised to 30% or 50%.
Further increase to 50% or 80% in 2005.
In 2006, the prior approval of account opening was further abolished, and enterprises can open current account foreign exchange accounts directly in banks without the approval of the foreign exchange bureau. Instead of simply checking the quota by income, the quota is checked according to the sum of 80% of the current account foreign exchange income and 50% of the current account foreign exchange expenditure of the enterprise in the previous year, which further improves the foreign exchange quota that the enterprise can keep.
In 2007, the account quota management was abolished, allowing enterprises to independently retain foreign exchange according to their business needs.
On August 13, 2007, the State Administration of Foreign Exchange issued the Notice on Retaining Current Account Foreign Exchange Income of Domestic Institutions, which cancelled the quota of current account foreign exchange accounts of domestic institutions, and domestic institutions can retain current account foreign exchange income according to their own business needs. It can be said that it is the end of compulsory settlement and sale of foreign exchange.
I also read a lot of information. Some documents on the Internet say that it started in 2008. I think it is not unreasonable. 2008 is the year after the revision of the Regulations on Foreign Exchange Control.
However, I insist that the exact time should be August 13, 2007, and the compulsory settlement and sale of foreign exchange system officially ended.
Link to resource webpage (special report of SAFE in official website:)