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10 Sep 2015
PBOC boosts quota for net yuan inflows
FXStreet (Mumbai) - Chinese companies will be able transfer the yuan between their onshore and offshore entities more freely as the People's Bank of China (PBOC) decided to increase the quota for net yuan inflows under a cross-border pooling scheme, Reuters reported on Thursday.
As per Reuters, ‘The central bank's formula used to calculate how much funds are allowed to enter China on a net basis was boosted from 0.1 to 0.5.’
‘Effectively, that would mean that the amount of net inflows into the country might increase to five times the earlier amount.’
‘At the same time, the central bank lowered the threshold of companies that can participate in the scheme.’
The decision followed a string of reforms of the nation's financial system aimed to make it more competitive and market-oriented.
As per Reuters, ‘The central bank's formula used to calculate how much funds are allowed to enter China on a net basis was boosted from 0.1 to 0.5.’
‘Effectively, that would mean that the amount of net inflows into the country might increase to five times the earlier amount.’
‘At the same time, the central bank lowered the threshold of companies that can participate in the scheme.’
The decision followed a string of reforms of the nation's financial system aimed to make it more competitive and market-oriented.