Chinese Exporters May Keep Foreign Currency Earnings Offshore

Exporters in China will no longer be required to convert most of their overseas earnings into local currency, reports the Wall Street Journal.


The Journal says the State Administration of Foreign Exchange has announced it will start allowing exporters to keep some of their foreign currency earnings offshore. Exporters who need foreign currency to buy imports and other supplies will benefit most from the trial program.


Despite the relaxed currency controls, the strengthening of the yuan would likely encourage businesses to bring forex earnings to China and convert them to yuan, reports the Journal, quoting Bank of America-Merrill Lynch economist Lu Ting. To view list of Forex brokers where you can trade online visit Australian forex brokers.



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