(Photo: China Daily)
Council also aims to give a boost to cross-border trade and investment
The State Council has renewed its pledge to maintain the yuan at a stable and balanced level and cut red tape in the foreign exchange sector as part of measures to stabilize foreign trade, investment and expand opening-up.
In a statement following its executive meeting on Wednesday, the Cabinet said it had adopted 12 measures to improve foreign exchange management and boost cross-border trade and investment.
A pilot reform dealing with foreign exchange receipts and payments facilitation will be expanded, and limits on the number of foreign currency accounts under capital accounts will be removed to make foreign trade and investment easier.
Premier Li Keqiang said at the meeting that it has been the government's consistent position to maintain a stable exchange rate for the yuan and a reasonable level of foreign reserves, which were of vital importance to macroeconomic stability.
He also highlighted the importance of preventing risks from cross-border capital flows and ensuring a stable financial sector.
The country's foreign exchange reserves - the world's largest - rose by $19.7 billion from the beginning of this year to $3.09 trillion by the end of September, according to the State Administration of Foreign Exchange.
Wang Chunying, a spokeswoman for the administration, told a news briefing on Friday that the measures adopted at the State Council meeting were a step toward reform aimed at further cutting red tape and improving government oversight and services and pushing forward the supply-side structural reform of the financial sector.
It would simplify procedures for businesses seeking access to services, expand their funding channels and bolster support of domestic companies in conducting trade and investment overseas, she said.
"It will also further reduce corporate burdens, stimulate market vitality and unleash dividends of policies," she said.
Wang said China's economic fundamentals would continue to be a strong pillar for the stability of its foreign exchange market, and policies to expand opening-up would also play a positive role.
Chinese banks recorded net foreign exchange sales of $48.2 billion in the first three quarters of this year, the administration said.