Shanghai To Encourage Yuan Use In Free Trade Zone
by Lorys Charalambous, Lowtax.net, Cyprus
30 November, 2016
China's central bank is to encourage those with foreign-currency accounts to use yuan in the Shanghai Pilot Free Trade Zone (Shanghai Pilot FTZ), China's central bank said.
Zhang Xin, Deputy Head of the Shanghai headquarters of the People's Bank of China, said Shanghai aims to achieve a net capital inflow in 2016 via FTZ accounts and balance capital inflows and outflows to stabilize the financial market.
Specifically, Shanghai will provide easier access to foreign exchange swaps in the FTZ, the central bank said in a document released at a news conference on November 24.
Noting the central bank's plans, the Shanghai Pilot Free Trade Zone said the move has been prompted by concerns about the yuan's depreciation. According to the free zone, banks will offer more attractive deals to yuan buyers within the FTZ.
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