In a speech at the Financial Street Forum, the Central Bank of the Republic of China set out priorities for deepening foreign exchange reform and high-level opening, alongside a stronger framework for supervision and risk prevention under more open conditions. The address flagged that nine new policy measures aimed at further trade and investment facilitation will be issued in the near term. The planned measures include expanding the scope of high-level cross-border trade opening pilots, widening the range of netting settlement business, improving foreign exchange settlement for entities in new trade formats, and easing management of advance payments in services trade. The speech also pointed to broader institutional opening in the foreign exchange domain, including coordinated work on renminbi internationalisation and high-quality capital account opening, and further reforms spanning direct investment, cross-border financing and securities investment. It noted a cross-border investment and financing policy package launched in September and indicated forthcoming policies covering integrated domestic and foreign currency cash pooling for multinational groups and fund management for domestic companies’ overseas listings, alongside integrated foreign exchange management reform and innovation in free trade zones. On oversight, the approach described centres on a combined macroprudential and micro-supervisory model, with greater use of artificial intelligence and big data for monitoring and early warning and stepped-up enforcement against illegal and non-compliant activities. The speech cited growth in market and cross-border activity, including a 37% rise in foreign exchange market trading volume in 2024 versus 2020 and a 64% increase in foreign-related receipts and payments over the same period, with receipts and payments totalling USD 11.6 trillion in the first three quarters.
Central Bank of the Republic of China 2025-10-27
Central Bank of the Republic of China signals nine forthcoming foreign exchange measures to widen cross-border trade and investment opening
The Central Bank of the Republic of China outlined priorities for foreign exchange reform and high-level opening at the Financial Street Forum, announcing nine policy measures to enhance trade and investment facilitation. These include expanding cross-border trade pilots, improving foreign exchange settlement, and easing service trade payment management. The bank emphasized a combined macroprudential and micro-supervisory oversight model, leveraging AI and big data for monitoring and enforcement.