Kathmandu— In a statement released after its work conference, the State Administration of Foreign Exchange (SAFE) announced that it will continue to expand institutional opening-up in the foreign exchange sector during the second half of this year. The administration aims to support new forms of trade such as cross-border e-commerce and optimize foreign exchange settlement for service trade.

Facilitation Policies for Cross-Border Trade

The SAFE will promote nationwide facilitation policies for high-level opening-up in cross-border trade foreign exchange receipts and payments. This includes supporting the development of new forms of trade such as cross-border e-commerce, optimizing foreign exchange settlement for service trade, and bolstering the development of intermediate goods trade.

These measures are designed to enhance the efficiency and flexibility of cross-border transactions, thereby fostering a more open and competitive environment in China’s foreign trade sector.

Support for Financial Centers

The administration will support the development of Shanghai as an international financial center. It aims to improve foreign exchange management to implement the plan for upgrading pilot free trade zones, particularly focusing on the Hainan Free Trade Port and other regions in carrying out foreign exchange management innovations.

These initiatives are expected to strengthen China’s position in global finance by enhancing regulatory frameworks and promoting innovation.

Strengthening Market Stability

The meeting also emphasized the importance of strengthening monitoring of cross-border capital flows. The administration will continuously improve macro-prudential management and expectation management to take comprehensive measures that safeguard the stability of the foreign exchange market.

These steps are crucial in maintaining a balanced and stable financial environment, ensuring that China’s economic reforms proceed smoothly.

(With inputs from Xinhua)

Originally published on abcnews.com.np.