On Air Now

Current Show

At Home with Gary Sullivan   10:00 AM - 12:00 PM

Call Gary Sullivan at 1-800-823-8255

Show Info »

Upcoming Shows

Program Schedule »

Listen

Listen Live Now » 550 AM Wausau, WI 99.9 FM Stevens Point, WI

Weather

Current Conditions(Wausau,WI 54403)

More Weather »
55° Feels Like: 55°
Wind: ESE 8 mph Past 24 hrs - Precip: 0.04”
Current Radar for Zip

Today

Thundershowers 65°

Tonight

Thundershowers 49°

Tomorrow

Isolated Thunderstorms 67°

Alerts

China to probe use of foreign currency in trade finance

A man looks at the Pudong financial district of Shanghai November 20, 2013. REUTERS/Carlos Barria
A man looks at the Pudong financial district of Shanghai November 20, 2013. REUTERS/Carlos Barria

BEIJING (Reuters) - Chinese regulators will clamp down on banks' and companies' use of foreign currency for trade finance by ensuring that trade deals are authentic and by monitoring for unusual cross-border cash flows, state media reported.

The report did not specify the illegal activities targeted by the State Administration of Foreign Exchange (SAFE) in the clampdown. China is in the midst of an effort to quell currency speculation, however.

Banks have not fulfilled a duty to carry out their own investigations into the use of foreign currency, prompting SAFE to carry out its assessments and punish institutions accordingly, Xinhua reported on Saturday.

According to SAFE, the authenticity and compliance of long-term trade financing will be a particular focus of the crackdown, the report said.

Penalties for any illegal activity will be increased, Xinhua said.

The foreign exchange reserves of China's central bank recently reached their highest level since January 2008 as a result of the rising value of the renminbi, Chinese policy reforms and market expectations that the U.S. Federal Reserve will soon start curbing monetary stimulus, Xinhua said.

(Reporting by Paul Carsten; editing by Jane Baird)

Comments