Before the reform and opening up, China implemented a highly centralized planned economy system. Due to the shortage of foreign exchange resources, China has been implementing strict foreign exchange control. Since the implementation of the 1978 reform and opening-up strategy, the reform of China's foreign exchange management system has changed from a highly centralized foreign exchange management system to a foreign exchange management system that adapts to the socialist market economy along the direction of gradually narrowing the mandatory plan and cultivating the market mechanism. 1996 12 China has realized the convertibility of RMB under current account, strictly managed foreign exchange under capital account, and initially established a foreign exchange management system adapted to the socialist market economy. Since the founding of New China, China's foreign exchange management system has generally experienced three stages: planned economy period, economic transition period and socialist market economy. Implement the foreign exchange retention system
In order to reform the foreign exchange distribution system of unified revenue and expenditure, mobilize the enthusiasm of foreign exchange earning units, expand foreign exchange income and improve the allocation of foreign exchange resources, the foreign exchange retention method was implemented from 65438 to 0979. While foreign exchange is managed by the state in a unified and balanced way to ensure key points, trade foreign exchange and non-trade foreign exchange are reserved, and a certain proportion of foreign exchange is reserved for foreign exchange earning places and enterprises according to different situations, so as to solve the problem of importing materials needed for developing production and expanding operations. The object and proportion of foreign exchange retention shall be stipulated by the state. The use of retained foreign exchange must comply with state regulations. Units with foreign exchange reserves can sell them to units that need foreign exchange through the foreign exchange swap market if they don't need foreign exchange. The scope and proportion of retained foreign exchange have gradually expanded, and the foreign exchange arranged in the mandatory plan has gradually decreased accordingly.
Foreign exchange swap market
On the basis of implementing the foreign exchange retention system, the need to adjust foreign exchange has arisen. Therefore, from June 1980 to June 10, Bank of China started the foreign exchange adjustment business, allowing the units with foreign exchange retention to adjust the excess foreign exchange quota to the units with insufficient foreign exchange. In the future, the object and scope of foreign exchange adjustment will be gradually expanded, initially limited to the foreign exchange retained by state-owned enterprises and collective enterprises, and later extended to foreign-invested enterprises, foreign donations and domestic residents. The exchange rate for adjusting foreign exchange was originally stipulated by the state to increase to a certain extent on the basis of the official exchange rate. In March, the exchange rate was released 1988, which was decided by the buyers and sellers independently according to the foreign exchange supply and demand. The People's Bank of China moderately intervened in the market, and guided the use of foreign exchange (or foreign exchange market access) by formulating the "Guidance Sequence for Foreign Exchange Adjustment", and the role of market adjustment was increasingly enhanced.
Reform the RMB exchange rate system
1, the dual exchange rate system of internal settlement price and foreign exchange rate is implemented.
Excessive exchange rate is not conducive to the development of foreign trade. Therefore, in 198 1, China has set the internal settlement price of trade foreign exchange, which is set as 1 USD equivalent to 2.8 yuan RMB according to the average exchange cost of export commodities at that time, and continues to announce the official exchange rate of 65,438+. The two exchange rates have played a certain role in encouraging exports and taking care of non-trade interests, but there is confusion in the scope of use, which has brought many complicated problems to foreign exchange accounting and foreign exchange management. With the rise of the US dollar exchange rate in the international market, China gradually lowered the official exchange rate, and by the end of 1984, the official exchange rate was close to the internal settlement price of trade foreign exchange. 1 985 65438+1 October1Cancel the internal settlement price, and re-implement the single exchange rate, with the exchange rate of1USD against 2.8 yuan RMB.
2. Adjust the official exchange rate according to the price changes at home and abroad.
After the reform and opening up, China's price reform has been gradually liberalized and prices have risen. In order to make RMB exchange rate adapt to price changes and play a role in adjusting international payments, the exchange rate was adjusted several times in 1985-90 according to domestic price changes. From 1985+ 1 USD in October to RMB in 2.8 yuan, it was gradually adjusted to 10/65438 USD in October to RMB 5.22. In recent years, the downward adjustment of RMB exchange rate is mainly based on the change of the average exchange cost of national exports, and the downward adjustment of exchange rate lags behind the rise of domestic prices.
3, the implementation of the official exchange rate and foreign exchange swap market exchange rate system.
In order to cooperate with foreign trade, implement the contract system and cancel financial subsidies, foreign exchange adjustment centers have been set up in various places since March 1988, and the amount of foreign exchange adjustment has gradually increased, forming an exchange rate system in which the official exchange rate and the market exchange rate coexist. From April 9th, 199 1, the adjustment of the official exchange rate was changed from a large and one-off adjustment to a gradual and slow adjustment, that is, a managed floating was implemented, and by the end of 1990, it was adjusted from 16544 to 1 USD or 5.72. At the same time, the exchange rate of the foreign exchange swap market is liberalized, allowing it to fluctuate with market supply and demand, and the exchange rate fluctuates greatly. With the national macro-control and the intervention of the People's Bank of China in the market, 1 at the end of 1993 1 rose to1USD or 8.72 RMB.
Allow a variety of foreign exchange business
Before 1979, foreign exchange business was managed by Bank of China. In order to adapt to the new situation after the reform and opening-up, we have introduced a competition mechanism in the field of foreign exchange business, reformed the operating mechanism of foreign exchange business, allowed national specialized banks to cross business, and approved a number of commercial banks and a number of non-bank financial institutions to operate foreign exchange business; Foreign-funded financial institutions are allowed to set up business institutions to engage in foreign exchange business, forming a pattern in which various financial institutions participate in foreign exchange business.
Capital input-output management system
(6) Relax foreign exchange control for domestic residents.
Foreign exchange deposited by individuals in China is allowed to be held and deposited in banks, but it is not allowed to be bought, sold or taken out of the country without permission. Foreign exchange for personal income is allowed to be retained in a certain proportion or in full according to different situations. From 1985, all remittances remitted to domestic residents from abroad or foreign exchange brought into China from abroad are allowed to be kept and deposit accounts are opened in banks. 199 1 year1month, foreign exchange owned by individuals is allowed to participate in foreign exchange adjustment. Individuals who need to use foreign exchange for going abroad to visit relatives, emigrate, study abroad, and support their relatives abroad may apply to the State Administration of Foreign Exchange with exit certificates and relevant certificates. After approval, they can sell a certain amount of foreign exchange, but the standards for approving the use of foreign exchange are low.
About foreign exchange certificates.
In order to facilitate passengers and prevent foreign currency from circulating in China and arbitrage in foreign exchange and materials, Bank of China issued foreign exchange certificates in RMB denomination from April 1980. Foreigners, overseas Chinese, compatriots from Hong Kong, Macao and Taiwan, foreign embassies and consulates, and personnel of delegations can exchange foreign exchange into foreign exchange certificates according to the foreign exchange rate quoted by banks. Foreign exchange certificates must be used to purchase goods and pay labor and service fees in hotels, restaurants, designated shops and airports. Unused foreign exchange certificates can be taken out of the country or exchanged for foreign exchange within 50% of the original exchange amount. Units that collect foreign exchange certificates must be approved by the foreign exchange bureau, and the foreign exchange certificates collected must be deposited in banks and managed according to two lines of revenue and expenditure. If the acquiring unit exchanges foreign exchange certificates with the bank, it may retain foreign exchange in accordance with the regulations. 1993165438+10/4 The Third Plenary Session of the 14th CPC Central Committee adopted the "Decision of the Central Committee on Several Issues Concerning the Establishment of a Socialist Market Economic System", which explicitly demanded "to reform the foreign exchange management system, establish a managed floating exchange rate system based on market supply and demand and a unified and standardized foreign exchange market, and gradually make the RMB. This points out the direction for the further reform of the foreign exchange management system. From 65438 to 0994, around the goal of foreign exchange system reform, according to the predetermined reform steps, China's foreign exchange management system mainly carried out the following reforms:
Go through drastic reforms.
(1) 1994 major reform of the foreign exchange system, conditional convertibility of RMB under current account.
1, implement the system of bank settlement and sale of foreign exchange, cancel the payment and retention of foreign exchange, and cancel the mandatory plan and approval of foreign exchange use. From 1994 65438+ 10/0/,all kinds of foreign exchange retention, repatriation and quota management systems will be abolished, and the foreign exchange receipts and payments under the current account of domestic institutions will be subject to the bank settlement and sale system. Except for goods subject to import quota management and import management of specific products and goods subject to automatic registration system, foreign exchange must be purchased at designated foreign exchange banks with licenses, import certificates or import registration forms, corresponding import contracts and valid commercial bills (invoices, waybills, payment certificates, etc.). Corresponding to the payment method, foreign exchange for other goods, foreign exchange for trade miscellaneous expenses and foreign payment for non-trade business that meet the national import management regulations shall be collected by contracts, agreements, invoices and payment notices from overseas institutions. In order to concentrate foreign exchange to ensure the supply of foreign exchange, the foreign exchange income of domestic institutions in current account, except the foreign exchange allowed by the state, can be repatriated in time and sold to designated foreign exchange banks at the market exchange rate.
2. Exchange rate integration, based on market supply and demand, implements a single and managed floating exchange rate system. 1 994 65438+1October1,the official exchange rate of RMB is combined with the market exchange rate, and a single and managed floating exchange rate system based on market supply and demand is implemented. At the time of merger, the RMB exchange rate was 1 USD = 8.70 RMB. RMB exchange rate is formed by market supply and demand. The People's Bank of China announces the daily exchange rate, and foreign exchange transactions are allowed to float within a certain range. Over the past five years, the RMB exchange rate has been basically stable, with a slight increase.
3. Establish a unified, standardized and efficient foreign exchange market. From 1 99465438+1October1,Chinese-funded enterprises withdrew from the foreign exchange swap center, and designated foreign exchange banks became the main body of foreign exchange transactions. 1 April 9941Inter-bank foreign exchange market China Foreign Exchange Trading Center was established in Shanghai, connecting all branches in China. Since April 4th, the China Foreign Exchange Trading Center system has been officially put into operation, with membership system and centralized settlement system for matchmaking transactions, which embodies the principle of giving priority to price and time. According to the macroeconomic policy objectives, the People's Bank of China intervened in the foreign exchange market, regulated market supply and demand, and kept the RMB exchange rate stable.
4. The foreign exchange management policies of foreign-invested enterprises will remain unchanged. In order to reflect the continuity of national policies, 1994, when implementing the system of bank settlement and sale of foreign exchange for domestic institutions, foreign exchange receipts and payments of foreign-invested enterprises are still maintained in the original way, allowing them to retain foreign exchange, and foreign exchange transactions of foreign-invested enterprises must still be entrusted to designated foreign exchange banks to handle through local foreign exchange swap centers, and settled uniformly at the exchange rate of the inter-bank foreign exchange market.
5. It is forbidden to price, settle and circulate foreign currency in China. 1 994 65438+1October1,China reiterated that it would cancel domestic foreign currency pricing and settlement, prohibit domestic circulation of foreign currency and private trading of foreign exchange, and stop issuing foreign exchange certificates. For the foreign exchange certificates in circulation, they are allowed to continue to be used until199465438+February 3 1, and can be converted into US dollars or RMB at China Bank before 1995.
Through the above reforms, China has successfully realized the conditional convertibility of RMB current account from 65438 to 0994.
Cancel the current account
(2) 1996, cancel the remaining exchange restrictions under the current account, 12, 1, and declare the RMB convertible under the current account.
1. Incorporate foreign exchange transactions of foreign-invested enterprises into the bank settlement and sale system. Since July 1996, foreign exchange trading of foreign-invested enterprises has been incorporated into the bank settlement and sale system. At the same time, foreign exchange accounts of foreign-invested enterprises are divided into current account foreign exchange settlement accounts and capital account foreign exchange special accounts. The foreign exchange bureau approves the maximum amount of foreign exchange settlement accounts, and foreign-invested enterprises retain foreign exchange income under the current account within the approved limit, and the excess must be settled. Foreign payments made by foreign-invested enterprises under the current account can be handled directly at designated foreign exchange banks with valid vouchers, and at the same time, foreign exchange adjustment centers will continue to be retained to serve foreign exchange transactions of foreign-invested enterprises. 1998 12 1 after the closure of the foreign exchange adjustment center, all foreign exchange transactions of foreign-invested enterprises are conducted in the bank settlement and sale system.
2. Raise residents' foreign exchange standards and expand the scope of foreign exchange supply. 65438+1 July, 19961,the foreign exchange supply scope of residents has been expanded due to the substantial improvement of private exchange standards.
3. Cancel the existing restrictions on the regular use of foreign exchange. During the period of 1996, China also lifted the restrictions on the use of foreign exchange for non-trade and non-business purposes, such as entry-exit exhibitions and investment promotion, and allowed China institutions and personnel in China to sell articles, equipment and utensils for their own use in China, and then the RMB proceeds could be converted into foreign exchange for remittance.
After the above reforms, China has lifted all restrictions on current international payments and transfers, which is in line with the requirements of Article 8 of the Agreement of the International Monetary Fund. 1996 12 1, China officially announced its acceptance of Article 8 to realize full convertibility of RMB under current account. So far, China has realized the convertibility of RMB under current account, strictly managed foreign exchange under capital account, initially established a foreign exchange management system adapted to the socialist market economy, and has been continuously improved and consolidated. For example, 1997, the foreign exchange supply standard for residents' own use has been greatly improved again, some Chinese-funded enterprises have been allowed to retain a certain amount of foreign exchange income under the current account, and a pilot project of foreign exchange settlement and sale by forward banks has been carried out, and so on. Since 1998, under the background of the deepening impact of the Asian financial crisis, in view of the prominent foreign exchange evasion, arbitrage, foreign exchange fraud and illegal trading, we have improved foreign exchange management regulations, strengthened foreign exchange law enforcement, ensured law-abiding operations, cracked down on illegal capital flows, maintained a stable and normal foreign exchange receipts and payments order of the RMB exchange rate, and created a fair, clean and healthy business environment on the premise of adhering to reform and opening up and convertibility of the RMB current account.
Deepen the system reform.
(3) Since 200 1 joined the World Trade Organization, we have continued to deepen the reform of the foreign exchange management system.
Since 200 1 joined the World Trade Organization, China's foreign economy has developed rapidly, the balance of payments has continued to be large, and reform and opening up have entered a new stage. Foreign exchange management actively conforms to the challenges of joining the WTO and integrating into economic globalization, further deepens reforms, continues to improve current account convertibility, steadily promotes capital account convertibility, and promotes trade facilitation. The main measures are:
Improve the efficiency of administrative licensing
1, greatly reducing administrative examination and approval and improving the efficiency of administrative licensing. According to the requirements of administrative examination and approval reform in the State Council, since 200 1, SAFE has cancelled 34 administrative licensing items in three batches, accounting for 46.5% of the original administrative examination and approval items. In accordance with the requirements of the Administrative Licensing Law, 39 reserved administrative licensing items were comprehensively cleared up, and the handling and operation procedures of these items were clarified and standardized, which improved the efficiency of administrative licensing.
Promote trade and investment facilitation
2. Further improve the foreign exchange management of current account and promote trade and investment facilitation. All Chinese-funded enterprises, like foreign-invested enterprises, are allowed to open current account foreign exchange accounts, which will double the cash retention ratio of enterprises and extend the time for settlement of foreign exchange exceeding the limit. We have repeatedly raised the guiding quota for domestic residents to purchase foreign exchange, and simplified relevant procedures. Simplify import and export verification procedures, establish three supervision modes of verification, batch verification and total verification, and try out export verification management; Promote the use of the "export verification system" to improve the accuracy and timeliness of export verification. We will implement foreign exchange management policies on current account that are in line with the operating characteristics of multinational corporations, and promote the global unified operation of funds of Chinese and foreign-funded multinational corporations.
Broaden the access channels for capital flows.
3. Steadily promote capital account convertibility and broaden capital access channels. Relax the restrictions on foreign exchange management of overseas investment, promote the pilot reform of foreign exchange management of overseas investment to the whole country, improve the examination and approval authority of branches and the amount of foreign exchange purchased by overseas investment, improve the management measures of financing external guarantee, and vigorously implement the "going out" strategy. Some insurance foreign exchange funds are allowed to invest in overseas securities markets and individuals are allowed to transfer overseas assets. We will implement the system of qualified foreign institutional investors, increase the investment quota, introduce international development institutions to issue RMB bonds in China, and promote the opening up of the securities market. Allow multinational companies to operate foreign exchange funds within the group, and collect or adjust regional and global foreign exchange funds. Introduce foreign exchange management policies for foreign capital mergers and acquisitions, and regulate cross-border mergers and acquisitions of domestic residents and mergers and acquisitions of domestic enterprises by foreign investors. Standardize the behavior of domestic residents in equity financing and return investment through overseas special purpose companies.
Floating exchange rate system
4. Actively cultivate and develop the foreign exchange market and improve the managed floating exchange rate system. Before the exchange rate reform on July 2, 2005, actively develop the foreign exchange market: change one-way foreign exchange transactions into two-way transactions, and actively try out the "market maker" system for small currencies; Expand the business scope of bank's forward settlement and sale of foreign exchange, and approve China Foreign Exchange Trading Center to open foreign currency-to-foreign currency transactions. On July 2 1, the RMB exchange rate formation mechanism was reformed, and a managed floating exchange rate system was implemented based on market supply and demand and with reference to a basket of currencies. In line with this reform, under the unified leadership and deployment of the People's Bank of China, the foreign exchange administration department issued a series of policies to promote the development of the foreign exchange market in time, including: increasing the number of trading entities and allowing qualified non-financial enterprises and non-bank financial institutions to enter the spot inter-bank foreign exchange market; Introduce the dollar "market maker" system and inquiry trading mechanism in the interbank market; Expand the bank-to-customer forward settlement and sale of foreign exchange business to all banks, and launch RMB-to-foreign currency swap business; Increase the variety of inter-bank market transactions and carry out forward and swap foreign exchange transactions; Implement the comprehensive position management of bank settlement and sale of foreign exchange and increase the total limit of the banking system; Adjust bank exchange rate management measures, expand the fluctuation range of non-US dollar currencies in the interbank market, cancel the floating range limit of non-US dollar currencies listed by banks, expand the difference between US dollar spot exchange and cash, and allow multiple prices for one day.
Actively guard against financial risks
5. Strengthen the management of capital inflow and actively guard against financial risks. Adjust the caliber of short-term external debt. The total amount of foreign debts of foreign banks shall be controlled, and foreign exchange loans issued by foreign banks to domestic institutions shall be managed according to domestic foreign exchange loans. Implement the payment and settlement system and strictly control the settlement of capital projects. Strictly control the short-term foreign debt balance of foreign-invested enterprises and the accumulated amount of medium-and long-term foreign debt within the "difference of foreign exchange", and clearly stipulate that foreign loans of foreign-invested enterprises shall not be settled for repayment of domestic RMB loans. On the basis of strengthening the authenticity audit, strengthen the management of export prepayment and import deferred payment. Domestic institutions/KLOC-Deferred payments of more than 0/80 days (inclusive) and the equivalent of more than 200,000 US dollars (inclusive) are included in the foreign debt management. At the same time, standardize the foreign debt management of special foreign-invested enterprises, incorporate overseas guarantees under domestic loans into the foreign debt management according to the performance amount, and change the debtor registration from one-by-one to the creditor's regular registration. Strengthen the management of foreign exchange settlement of residents and non-resident individuals.
Strengthen the statistical monitoring of balance of payments
6. Strengthen the statistical monitoring of the balance of payments, and intensify the rectification of the foreign exchange market and anti-money laundering efforts. We will speed up the construction of a statistical monitoring and early warning system for the balance of payments, initially establish a high-frequency debt monitoring system and a market expectation survey system, and continuously improve the level of early warning analysis. Intensify the investigation and handling of foreign exchange, rectify the order of the foreign exchange market, actively promote the construction of the credit system in the foreign exchange market, and initially establish a credit management model based on post-event supervision and indirect management. Establish and improve the working mechanism of foreign exchange anti-money laundering, formally implement the reporting system of large and suspicious foreign exchange fund transactions from 2003, and strengthen the analysis of anti-money laundering information.
At present, according to the requirements of coordinated and balanced economic development at home and abroad, the foreign exchange administration department is accelerating the establishment and improvement of the market mechanism and management system for regulating international payments, and promoting the basic balance of international payments. First, change the management mode of "lenient entry and strict exit", implement balanced management of capital inflow and outflow, and gradually make the conditions and environment of capital two-way flow tend to be consistent; The second is to adjust the management pattern of "tightening inside and loosening outside", gradually reduce the differential treatment between domestic capital and foreign capital, and create a fair competitive market environment; The third is to change the management concept of "valuing public over private" and standardize the foreign exchange receipts and payments of individual residents and non-resident individuals; Fourthly, administrative control should be reduced, and foreign exchange management should gradually shift from direct management to indirect management of major financial institutions, and from pre-approval to post supervision management. RMB current account convertibility
1996, China formally accepted the eighth clause of the agreement of the International Monetary Fund, and realized the convertibility of RMB under the current account. In order to distinguish between current account and capital account transactions and prevent illegal and criminal acts such as evasion of foreign exchange and money laundering without transaction background, China's current account foreign exchange management still implements authenticity audit (including guiding quota management). According to international practice, this does not constitute a restriction on current account convertibility.
1, the current account foreign exchange income is subject to the quota settlement system. Unless otherwise stipulated by the state, foreign exchange income under the current account must be repatriated in time. All domestic institutions (including foreign-invested enterprises) that have been approved by the State Administration of Foreign Exchange and its branches to open foreign exchange accounts under current account can retain foreign exchange income under current account within the approved maximum limit, and the excess can be sold to designated foreign exchange banks at the market exchange rate, and the excess can be retained for up to 90 days.
2. Foreign exchange used by domestic institutions in current account can be purchased directly from designated foreign exchange banks at market exchange rate or paid in RMB from their foreign exchange accounts with corresponding valid vouchers, except that individual projects must be approved by the foreign exchange bureau.
3, the implementation of import and export payment verification system. After the goods are exported, the foreign exchange bureau shall write off the corresponding export proceeds; After the payment of import payment, the foreign exchange bureau shall write off the corresponding arrival payment. Taking the export exchange rate as the main assessment index, the foreign exchange receipts of export enterprises are graded and assessed, and corresponding reward and punishment measures are taken according to the grades to help the superior and limit the inferior, and urge enterprises to collect foreign exchange in full and on time. Establish three supervision modes: write-off, batch write-off and total write-off, and try to manage export write-off in categories; At present, we are designing, developing and popularizing the "declaration system for export proceeds".