Administrative Measures for the Foreign Exchange Purchase and Sales Business Provided by Banks
Administrative Measures for the Foreign Exchange Purchase and Sales Business Provided by Banks
Administrative Measures for the Foreign Exchange Purchase and Sales Business Provided by Banks
Order of the People's Bank of China [2014] No.2
June 22, 2014
In accordance with the Law of the People's Republic of China on the People's Bank of China and the Administrative Regulations of the People's Republic of China on Foreign Exchange, the People's Bank of China has formulated the Administrative Measures for the Foreign Exchange Purchase and Sales Business Provided by Banks, which were passed at the fourth president office meeting on March 26, 2014, and are hereby issued and shall come into force as of August 1, 2014.
President Zhou Xiaochuan
Administrative Measures for the Foreign Exchange Purchase and Sales Business Provided by Banks
Chapter I General Provisions
Article 1 In order to regulate foreign exchange purchase and sales business provided by banks and guarantee the steady operation of foreign exchange market, the Administrative Measures for the Foreign Exchange Purchase and Sales Business Provided by Banks (hereinafter referred to as the "Measures") shall be formulated in accordance with the Law of the People's Republic of China on the People's Bank of China and the Administrative Regulations of the People's Republic of China on Foreign Exchange (hereinafter referred to as the "Administrative Regulations on Foreign Exchange").
Article 2 The People's Bank of China and branches thereof, the State Administration of Foreign Exchange (hereinafter referred to as the "SAFE") and branches thereof (hereinafter referred to as the "administrations of foreign exchange") are the supervision and management authorities of foreign exchange purchase and sales business of banks.
Article 3 Terms used herein are defined as follows:
1. banks refer to commercial banks, urban credit cooperatives, rural credit cooperatives and other financial institutions absorbing public deposits as well as policy banks established in the People's Republic of China in accordance with the law;
2. foreign exchange purchase and sales business refers to the business of conversion between RMB and foreign exchanges conducted by banks for clients or due to requirements of their own operation activities, including spot foreign exchange purchase and sales business and the business of RMB and foreign exchange derivative products;
3. spot foreign exchange purchase and sales business refers to the foreign exchange purchase and sales transaction with liquidation completed within two working days after the date of transaction conclusion and liquidation price being the exchange rate on the date of transaction conclusion;
4. business of RMB and foreign exchange derivative products refers to forward foreign exchange purchase and sales, RMB and foreign exchange futures, RMB and foreign exchange swap, RMB and foreign exchange options and other business and combinations thereof; and
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