Revised foreign exchange regs roil China copper market
Apr 20, 2011 | 12:00 PM
| Shi Lili
Tags
SAFE,
State Administration of Foreign Exchange,
China,
copper,
trade finance
BEIJING — The Chinese government has dealt another blow to copper’s function as a financing tool as it seeks to contain the economic risks posed by cross-border capital flow.
China’s State Administration of Foreign Exchange (Safe) has moved to reinforce foreign currency management for transboundary trade, stipulating that foreign currency income can only be settled down or transferred when companies complete payment for the intermediary trade.
Businesses that rely heavily on intermediary trade will be severely affected by the policy, which promises to deter Chinese companies from seeking overseas resources such as copper metal.....
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