Better Current Account Management System and Mechanism...

Title:Better Current Account Management System and Mechanism for Trade Liberalization and Facilitation, and High-Level Opening-Up

China Forex: In 2022，what is the general plan of foreign exchange management under the current account?

Liu Bin: 2022 is a critical year for the implementation of the "14th Five-Year Plan". The foreign exchange management under the current account will be guided by the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era，and adhere to the general principle of seeking progress while maintaining stability，focus on promoting secure，efficient and low-cost cross-border settlement and high-quality development of trade under current account，carry out institutional innovation and scientific governance，and serve the entities and facilitate people's livelihood. We will also continue to optimize the business environment by deepening reforms，coordinate development and security，strengthen policy transmission and supervision，and improve the current account foreign exchange management system and mechanism compatible with the modernization of the governance system，so as to achieve trade liberalization，facilitation and high-level opening-up.

China Forex: With the rise of new patterns of foreign trade，the business demands under the Current Account are new and complicated. Under the new situation，how can the foreign exchange management under the Current Account  meet the requirements of high-quality development and promote the healthy development of new trade patterns?

Liu Bin:  With the deepening of reform and innovation and the rapid development of "Internet plus"，new types of offshore international trade，cross-border e-commerce，market procurement and other new types of market entities and transactions have multiplied. These new entities are beneficial supplements to the traditional trade pattern and will become a new driving force for trade development.

In 2022，the foreign exchange management under the current account will continue the principle of "encouraging innovation，inclusiveness and prudence". Innovative management methods will be adopted to keep up with the times，market vitality will be stimulated to facilitate the standardized development of new forms of foreign trade.

First，we will continue to follow up the implementation of new offshore international trade policies，monitor the risk of abnormal and illegal transactions，and innovate the new offshore international trades that are true and compliant to laws and regulations.

Second，we will improve the management guidelines for market procurement trade，unblock bank settlement channels，and standardize the access of front-end entities so as to achieve both trade facilitation and risk prevention in key areas of market procurement.

Third，we will support more banks to carry out cross-border e-commerce foreign exchange business with reference to payment institutions and allow more bank branches in more areas to do so in order to provide more secure，efficient and low-cost settlement services for new business entities.