Forex regulator dismisses reports on capital outflow regulation

A clerk counts yuan bank notes and US dollar bills at a branch of the Industrial and Commercial Bank of China in Huaibei, East China's Anhui province. [Photo/IC]

BEIJING - China's foreign exchange regulator on Friday issued a stern statement on its official microblog, dismissing media reports about tightened regulation over capital outflows.

In the brief statement, the State Administration of Foreign Exchange (SAFE) condemned the false media reports, saying they misled public opinion and disrupted the normal order of the foreign exchange market.

Some reports said earlier this month that China had adopted new measures to tighten regulation over capital outflows and asked lenders to keep such measures secret.

SAFE reiterated in the statement that foreign exchange regulators have long been committed to facilitating trade and investment, while cracking down on any violations.

SAFE also urged commercial lenders to lead market players to properly use foreign exchange funds to maintain the market's stability.

Despite continued drops in China's foreign exchange reserves, the reserves are still abundant for the country to fend off external risks, the central bank said Monday.

Forex reserves fell for the sixth straight month to about $3.01 trillion last month, down from $3.05 trillion in November and $3.12 trillion.

SAFE said last month that China's cross-border capital flow has remained stable with no surges in foreign exchange purchases.