A senior official from the People’s Bank of China (PBOC) has flagged further opening of the capital account the Chinese financial hub of Shanghai.
PBOC deputy-governor and head of the State Administration of Foreign Exchange (SAFE) Pan Gongsheng (潘功胜) said that regulators would “further drive the establishment of Shanghai as an international financial centre.”
“The next step will be for PBOC and SAFE to continue to support Shanghai in implementing an even higher level of foreign opening of the capital account,” said Pan at the Lujiazui Forum in Shanghai on 18 June.
“We will also accelerate refinements to the ‘Macro-prudential + Micro-regulation’ Two Positions One Body regulatory framework for the forex market.”
Pan highlighted the increasingly prominent role played by Shanghai in cross-border payments and renminbi internationalisation.
“Shanghai has already become a key hub for internationalisation of the renminbi, and has always been at the forefront of financial opening,” he said.
“In terms of renminbi internationalisation Shanghai cross-border renminbi settlement volumes already comprise over 50% of the national share, and the renminbi settlement volumes of global Fortune 500 companies already exceeds their foreign currency settlement volumes.
“The renminbi has already become the first choice for multi-national companies as the currency for cross-border settlement”
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