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China's central bank puts watch on foreign non-resident accounts' fx trades
[BEIJING] China's central bank has asked commercial banks to strengthen supervision of foreign-held non-resident accounts (NRA) purchases of foreign exchange in China, sources with direct knowledge told Reuters on Friday.
The sources said the People's Bank of China (PBOC) has given commercial bankers window guidance - a form of administrative instruction - to banks regarding the monitoring of purchases of foreign currency by NRA account holders.
The sources said the banks will require clients to provide justification for purchases of dollars and other foreign exchange using yuan, and ensure the foreign currency is deposited in offshore accounts or special designated accounts onshore.
The PBOC did not immediately respond to calls requesting comment.