|
the State Administration of Foreign Exchange
Notice of the State Administration of Foreign Exchange on Measures for Administration of Adjusting Bank Position of Settlement and
Sales of Foreign Exchang
No.69 [2005] of the State Administration of Foreign Exchange
The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange of all provinces, autonomous
regions, and municipalities directly under the Central Government, the SAFE branches of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo;
all policy banks, state-owned commercial banks, and joint-stock commercial banks
In order to further develop foreign exchange market, enhance the flexibility and initiative of designated foreign exchange banks with
respect to the business of settlement and sale of foreign exchange and the management of foreign exchange, the state administration
of foreign exchange decides to adjust the measures for administration of the turnover position of settlement and sale of the foreign
exchange, and carry out the administration of general position of SSFE. According to Regulation of the People’s Republic of China
on Foreign Exchange Control and Interim Measures for Settlement and Sales of and Payment in Foreign Exchange by Designated Foreign
Exchange Banks (Order No. 4 [2004] of the People’s Bank of China) and other provisions, this Notice is hereby issued as follows:
1.
General position of Settlement and Sales of Foreign Exchange (SSFE) refers to the foreign exchange position formed through the transaction
between RMB and foreign currencies which is hold by designated foreign exchange banks (hereinafter referred to as “banks”). General
position of SSFE is formed in the business, by banks and subject to provisions of foreign exchange administration, of settlement
and sales of foreign exchange for customers and foreign exchange settlement and sale operations for self-purposes as well as participation
in the inter-bank foreign exchange market transaction.
2.
The State Administration of Foreign Exchange and its branches (hereinafter referred to as “foreign exchange bureaus”) shall, according
to balance of international payment, volume of exchange settlement and sales, domestic and foreign currencies as well as factors
such as asset status, verify general position of SSFE of banks and apply quota management. The lower limit of the management intervals
of general position of SSFE, at present stage, is zero while the upper limit is the quota authorized by foreign exchange bureaus.
3.
Banks which apply for approval or adjustment to quota of general position of SSFE shall provide the following materials to foreign
exchange bureaus:
(1)
Report of application;
(2)
Bases of approval or estimation and calculation about the quota of general position of SSFE;
(3)
Lists of combination of domestic and foreign currencies and balance sheet in foreign currencies within the territory in the latest
half year before application; and
(4)
Other documents and materials required by the State Administration of Foreign Exchange
As to foreign-funded banks, which have operated RMB business, applying for approval of quota of general position of SSFE at the first
time, they shall submit permission document, authorized by China Banking Regulatory Commission, of operating RMB business.
4.
Foreign exchange bureaus, on the entity principle, verify the quota of general position of SSFE and carry routine administration into
execution.
(1)
General position of SSFE of policy banks and national commercial banks are administered by the state administration of foreign exchanges.
(2)
General position of SSFE of urban commercial banks, rural commercial banks, rural cooperative financial institutions, foreign-funded
banks (Branches of foreign commercial banks are regarded as corporation.) shall be managed by local branches of the state administration
of foreign exchange (including foreign exchange administrative departments. Hereinafter referred to as foreign exchange branches).
As for the foreign commercial bank which has more than two branches within the territory of China, the general position of SSFE of
its branches can be administered, according to the relevant provisions in Notice of the State Administration of Foreign Exchange
concerning Concentrated Management of Turnover Position in Foreign Exchange Settlement and Sale of Foreign-Funded Banks within the
Territory of China (No. 50 [2005] of the State Administration of Foreign Exchange) uniformly in a centralized way, which is in charge
of the foreign exchange branch where the foreign commercial bank branches, responsible for performing the duties of concentrated
management, is located. With respect to the general position of SSFE of foreign-funded banks, which carry out the functions of business
market in inter-bank foreign exchange market, it shall be reported, after preliminary examination done by local foreign exchange
branches, to the State Administration of Foreign Exchange for uniformly approved.
Foreign exchange branches can authorize the central sub-branches within their own jurisdictions to conduct routine management of the
general position of SSFE of banks.
5.
Foreign exchange branches shall make assessment and supervision to the general position of SSFE of banks on a daily basis. The banks
shall manage the general position of SSFE over the whole systems of banks on a daily basis so as to keep the general position of
SSFE within the quota authorized by foreign exchange branches when each trading day ends. As for those who temporarily exceed the
quota, the amount shall be adjusted within the quota before the ending of next trading day.
6.
In a month after the day this notice comes into effect, Chinese-funded banks and foreign-funded banks which have operated RMB business
shall apply to foreign exchange branches for approval of the quota of general position of SSFE. Before the approval, those previously
fixed by the State Administration of Foreign Exchange shall continue to be valid.
7.
Foreign-funded banks which haven’t run RMB business still conduct the quota management about the special RMB account for exchange
settlement and sales according to Detailed Rules for the Implementation of the Settlement, Sale and Payment of Foreign Exchange by
Foreign-funded Banks (No.202 [1996] of the People’s Bank). In a month after the day the foreign-funded bank is authorized by China
Banking Regulatory Commission to operate RMB business, the foreign-funded bank shall apply to foreign exchange branch for the quota
of general position of SSFE.
8.
Banks shall accords with the requirements of these attachments in the notice and other provisions of foreign exchange administration,
and submit statistical report on general position of SSFE to foreign exchange branches.
9.
As for those banks who have violated provisions of administration of general position of SSFE, they shall be punished by foreign exchange
branches in accordance with the provisions of administration Regulation of the People’s Republic of China on Foreign Exchange Control,
Interim Measures for Settlement and Sales of and Payment in Foreign Exchange by Designated Foreign Exchange Banks (Decree of the
People’s Bank of China No.4. 2002) and other relevant provisions concerning foreign exchange administration.
10.
In case of any conflict in previous provisions with the present notice, the latter shall prevail. Notice on Strengthening the Administration
of Quota of the Turnover Position of Settlement and Sale of the Foreign Exchange in Designated Foreign Exchange Banks (Hui Guan Han
[1996] No. 130), Emergency Notice on Restatement of properly Managing the Reporting work of Daily Statement of Information about
SSFE and Turnover Position in Foreign Exchange Settlement and Sale and Revising relevant contents of records (Hui Guan Han [1998]
No.32) and Notice of the State Administration of Foreign Exchange on relevant issues concerning adjusting Report Form of Turnover
Position in Foreign Exchange Settlement and Sale in Banks (Hui Guan Han [2003] No.133) shall be repealed as of the date of implementation
of this notice.
All the branches of the SAFE shall promptly transmit this notice to urban commercial banks, rural commercial banks, rural cooperative
financial institutions and foreign-funded banks within its own jurisdictions upon receipt of it.
Annex: Requirements of Statistics on General Position of SSFE
State Administration of Foreign Exchange
September 22. 2005 Annex:Requirements of statistics on general position of SSFE
1.
Reporting time and methods of SSFE daily report
On the principle that general position of SSFE should be administrated by SAFE and its branches according to locality jurisdiction,
designated foreign exchange banks (hereinafter referred to as “banks”) shall submit SSFE daily report of each trading day to corresponding
foreign exchange bureaus in the next trading day. In case of any holiday at the expiry, the time limit may be extended.
(1)
SSFE daily report of policy banks, and national commercial banks shall be submitted respectively to the SAFE through fax and Email
(electronic documents takes the form of EXCEL) before 10:30 Am in the next trading day. FAX: 010-68402303; Email: shzh-hj@mail.safe.gov.cn
(2)
Specific submitting time and methods of SSFE daily report of other banks are in accordance with the requirements of all branches of
the State Administration of Foreign Exchange.
In case any foreign commercial bank administered general position of SSFE uniformly in a centralized way, SSFE daily report shall
be submitted to the local foreign exchange branch by foreign commercial bank branch which is in charge of performing duties of concentrated
management. Statistical items in the SSFE daily report shall be the summarized data of the whole branches of the foreign commercial
banks within the territory of China.
2.
Statistical description of SSFE daily report
(1)
Description of items
A.
SSFE for customers in a day shows the statistics of the amount of spot SSFE business managed by the whole bank system in a day.
B.
SSFE for self-purposes of the banks shows the statistics of the amount of self-purpose SSEF business managed by the whole bank system
in a day in accordance with foreign exchange administration provisions.
C.
Long-term SSFE Performance in a day shows the statistics of the performance amount of long-term SSFE business managed by the whole
bank system in a day to customers.
D.
Spot foreign exchange transaction among banks in a day shows the statistics of the amount of spot foreign exchange transaction, participated
by the whole bank system, in inter-bank foreign exchange market in a day.
E.
Long-term foreign exchange transaction Performance among banks in a day shows the statistics of the performance amount of long-term
foreign exchange transaction, participated by the whole bank system, in inter-bank foreign exchange market in a day. The scope of
statistics is confined to long-term transaction of full payment, not including long-term transaction of netting.
2.
Calculable relation of items
A.
7123456
B.
Balance (2),(3),(4) = settlement of exchange -Csales of exchange
Balance (5), (6) = buying – selling
3.
Others
A.
Concerning the linkage of reports
(a) For those Chinese-funded banks which are operating or not operating long-term SSFE business, once they started managing the position
of SSFE, “the financial position of SSFE of the previous day” in the FESS daily report as at the first day of exchange shall be calculated
as the amount at the end of the previous exchange day and the fixed adjustment amount.
(b) For those Foreign-funded banks, “the financial position of SSFE of the previous day” in the FESS daily report as at the first
day of exchange shall be calculated as the total amount of specific RMB accounts and cash accounts at the end of the previous exchange
day (including all on-process funds in the day) in negative value of US dollars. The exchange rate must be adopted as the same as
the closing rate of US dollars to RMB in the inter-banks exchange market that People’s Bank of China announced in the current day.
The fixed adjustment amount in foreign-funded banks must be adjusted above zero within 10 exchange days after adopting managing SSFE.
B.
Banks should meet all following requirements and record both internal and external large-amount settlements and sales of foreign exchange
transactions for each single transaction day in “notes” section of the SSFE daily report:
(a) The single settlement or sales of foreign exchange transaction, which the amount exceeds equivalence of $US 5000000 under current
accounts.
(b) The single settlement or sales foreign exchange transaction, which the amount exceeds equivalence of $US 10000000 under capital
accounts.
(c) All settlement or sales of foreign exchange transactions under current accounts for single customer every month, which the total
amount exceeds equivalence of $US 10000000.
(d) All settlement or sales of foreign exchange transactions under capital account for single customer every month, which the total
amount exceeds equivalence of $US 20000000.
C.
All amounts of foreign currencies in the SSFE report should be transferred into US dollars and recorded in integer. htm/e04334.htm Synthetic Position of SSFE Daily Report Form
Synthetic Position of SSFE Daily Report Form( )
Trade date: Unit: 10,000 USD
|
ITEM
|
SERIAL NO.
|
AMOUNT
|
|
Synthetic position of SSFE of the previous day
|
1
|
|
|
External SSEF of the day
|
BALANCE
|
2
|
|
|
INCLUDING
|
SETTLEMENT OF FOREIGN EXCHANGE
|
|
|
|
SALES OF FOREIGN EXCHANGE
|
|
|
|
Internal SSEF of the day
|
BALANCE
|
3
|
|
|
SETTLEMENT OF FOREIGN EXCHANGE
|
|
|
|
|
SALES OF FOREIGN EXCHANGE
|
|
|
|
|
Future external SSEF performance of the day
|
BALANCE
|
4
|
|
|
SETTLEMENT OF FOREIGN EXCHANGE
|
|
|
|
|
SALES OF FOREIGN EXCHANGE
|
|
|
|
|
Spot foreign exchange of inter-banks of the day
|
BALANCE
|
5
|
|
|
SETTLEMENT OF FOREIGN EXCHANGE
|
|
|
|
|
SALES OF FOREIGN EXCHANGE
|
|
|
|
|
Future foreign exchange performance of inter-banks of the day |
BALANCE
|
6
|
|
|
SETTLEMENT OF FOREIGN EXCHANGE
|
|
|
|
|
SALES OF FOREIGN EXCHANGE
|
|
|
|
|
Synthetic Position of SSFE of the day |
7 |
|
|
NOTES:
|
Date:
Department Seal and Signature:
| 