The State Administration of Foreign Exchange (SAFE) issued a Notice on Further
Improving FX Management of Domestic Foreign‑Currency Loans. Key points: first,
tighten account management—domestic foreign‑currency loans will use dedicated
accounts; eligible loans backed by goods or services export may be credited
directly to current‑account FX settlement accounts. Second, simplify FX
settlement and purchase—SAFE will manage settlement of domestic foreign‑currency
loans by transaction background under a principle of actual need and
convenience, cancel related administrative approvals, and allow borrowers with
supporting authenticity documents to go directly to banks to purchase FX to
repay domestic foreign‑currency loans. Third, strengthen ongoing and
post‑transaction supervision—SAFE sets out specific processing and
data‑reporting requirements and will increase statistical monitoring and
inspections to guard against related risks.
