China strengthens supervision of foreign exchange operations

Almaty. September 9. Silkroadnews - The State Administration of Foreign Exchange Control (SAFEC) of China in the fight against capital outflows recommended financial institutions in Shanghai and Guangdong to strengthen the supervision of foreign exchange operations, the newspaper "Vedomosti".
As specified in the publication, SAFEC considers it necessary to strengthen the supervision of foreign exchange for current account and the capital account. Through personal foreign currency accounts in Shanghai without supporting documents will be possible to buy not more than $50 thousand per day.
The People's Bank of China (PBOC), on Tuesday gave an explanation on the increase in reserve requirements for yuan forwards from 15 October. The communication controller said that the move is not aimed at restricting the movement of capital, but it should help to reduce excessive fluctuations in the currency market and prevent financial risks.
Thus, PBOC expects to increase costs on speculative trading by this requirement, the document says.