TA national foreign exchange administration work conference was recently held in  Beijing. The conference conveyed the spirit of the Sixth Plenary Session of the Seventeenth CPC Central Committee, the Central Economic Work Conference, and the Fourth National Financial Work Conference, providing an overall summary of work related to foreign exchange administration in 2011 and, based on an in-depth analysis of the current situation with respect to the economy, finance, and the balance of payments, setting forth the tasks for foreign exchange administration in 2012. At the conference Yi Gang, Vice President of the People’s Bank of China and Administrator of the State Administration of Foreign Exchange, delivered a report on foreign exchange administration work. Deputy Administrators Deng Xianhong, Fang Shangpu, Wang Xiaoyi, and Li Chao, Discipline Inspection Group Leader Yang Guozhong, and relevant responsible comrades in the branches (offices), divisions, and overseas offices of the SAFE attended the conference.

It was pointed out at the conference that in 2011 the foreign exchange authorities did a relatively good job in accomplishing the main work objectives and tasks set forth at the beginning of the year, in accordance with the overall arrangements of the CPC Central Committee and the State Council, deeply implementing the scientific outlook on development and accelerating transformation of the concepts and methods of foreign exchange administration, while promoting the facilitation of trade and investment, effectively attaching more priority to slowing down the excessively rapid increase in the surplus of foreign exchange settlement and sales by banks, actively guarding against and cracking down on irregular inflows of hot money, steadily promoting the reform of the verification and writing-off system, and improving the operation and management of foreign exchange reserves.

It was stressed that 2012 would be an important year as a connecting link between the 11th and 12th Five-Year Plans. Facing newly emerging situations, features, opportunities, and challenges in the economy both at home and abroad, the foreign exchange authorities should comprehensively implement the spirit of the 17th National Party Congress, the 3rd, 4th, 5th, and 6th Plenary Sessions of the 17th CPC Central Committee, the Central Economic Work Conference, and the 4th National Financial Work Conference, follow the guidance of Deng Xiaoping Theory and the important thought of the Three Represents, and deeply implement the scientific outlook on development; in accordance with the uniform arrangements of the CPC Central Committee and the State Council, they should accelerate the “Five Kinds of Transformations” of the concepts and methods of foreign exchange administration, strengthen the monitoring and management of cross-border capital flows, deepen the reform in key areas, and promote the steady and rapid development of the domestic economy.

The conference set forth the key tasks for foreign exchange administration in 2012: first, sticking to the risk limits and constructing a system and mechanism for protection against the impact of cross-border capital flows; second, accelerating promotion of the reform in key areas of foreign exchange administration, doing a solid job in the work related to the pilot reform of the verification and writing-off for imports and exports and in the promotion of the said reform, gradually promoting convertibility under capital account, and accelerating the development of the foreign exchange market; third, further transforming the management methods and promoting the facilitation of trade and investment; fourth, improving the management system and mechanisms, and realizing the security, flow, and  maintenance and appreciation of value in foreign exchange reserve assets; fifth, improving the regulatory system and the balance of payments statistical system, strictly adhering to law-based administration, and promoting the basic work of foreign exchange administration to a new level; sixth, further strengthening work related to Party building, clean government, cadre teams, and internal management.