(4 November 2026 – China) China is proposing a series of foreign exchange reforms aimed at reducing transaction costs, simplifying cross-border payments and improving access to currency settlement services for businesses engaged in international trade.
The State Administration of Foreign Exchange (SAFE) has released a draft notice outlining nine measures designed to facilitate current-account foreign exchange transactions, including expanded payment services and simplified compliance requirements.
The proposals, released for public consultation on Monday, seek to broaden the scope of foreign exchange services available to businesses while reducing settlement costs and administrative burdens.
A central element of the reforms is the proposed nationwide expansion of a pilot programme that simplifies foreign exchange receipts and payments for cross-border trade. Scheduled to take effect on 1 January, the scheme would allow banks to streamline documentation checks and settlement procedures for eligible businesses with strong compliance records.
SAFE is also seeking to expand the range of foreign exchange services provided by payment institutions beyond cross-border e-commerce to include market procurement trade and integrated foreign trade services.
The proposed changes would enable payment providers to offer currency conversion and related settlement services to a broader range of businesses involved in international commerce.
Additional measures include exemptions from trade credit reporting requirements for qualifying companies with established compliance records. Businesses demonstrating sound internal controls would also be permitted to report outstanding trade credit balances monthly rather than on a transaction-by-transaction basis.
The draft further proposes easing foreign exchange settlement requirements for operating leases and allowing eligible businesses across nine border regions to offset cross-border trade receipts against payments.
Foreign exchange procedures for international sporting events would also be simplified, enabling organisers to process event-related transactions using payment instructions. Overseas participants would be able to access personal foreign exchange services without providing supporting documentation for each transaction.
The proposals follow commitments made by SAFE chief Zhu Hexin at the 2026 Financial Street Forum in Beijing, where he outlined plans to facilitate current-account transactions, ease cross-border investment and financing restrictions, and further liberalise China’s foreign exchange market.
Zhu said the initiatives were intended to help businesses make more effective use of domestic and international markets and financial resources.
The proposed reforms form part of China’s broader efforts to improve cross-border financial services, reduce administrative complexity and support international trade activity.
Public consultation on the draft measures will remain open until 1 December.