(Xin Hua Net)
China’s monetary authorities announced on Friday the launch of a pilot cash-pooling service for multinational companies that integrates domestic and foreign currency management to facilitate the use of cross-border capital.
The pilot program will be launched in the country’s capital Beijing and the southern economic powerhouse Shenzhen, and will serve large multinational companies with relatively high credit ratings, according to the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange.
The move aims to advance the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the Beijing pilot free-trade zone, support the building of a higher-level open economy, and improve the ability of financial services to serve the real economy, the PBOC said in a statement.
The cash-pooling service will unify domestic and foreign currency management policies and allow multinationals to purchase foreign exchange at will within a certain limit, it said, noting that the purchased funds can be deposited in the domestic primary account for external payment.