China Central Bank to allow FTZ-based firms to freely convert yuan within $10mn limit

BEIJING: The People's Bank of China said on Friday it would allow free-trade-zone-based companies each to freely convert up to $10 million worth of yuan annually, as part of its reforms of cross-border currency trade.

The central bank said in new documents outlining its plans for supporting free trade zones that it was seeking to deepen reforms of foreign exchange management and to assist firms wishing to borrow yuan overseas.

Financial institutions in the Fujian trade zone are permitted to operate short-term loan business with Taiwan, the central bank added.