TNAG-1624-FCO40-2238-Relations-between-Hong-Kong-and-China-1987 — Page 198

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3

4.

(ii) System of control and operation

The State Administration of Exchange Control

(SAEC) of the People's Bank of China (PBOC) and its branches in the various municipalities, provinces, special economic zones and autonomous regions are empowered by the State Council to operate the foreign exchange control

system. The Bank of China (BOC) is a specialised bank

responsible for foreign exchange dealings and

international banking business.

5.

follows :

The functions of the SAEC can be summarised as

(i)

(ii)

to devise a system of regulations for

foreign exchange management in accordance

with the national economic policy needs;

to plan China's international balance of

payments and to ensure that the plans are

being effectively carried out;

(iii) to centralise the management and

allocation of foreign exchange earnings

(iv)

(v)

and reserves;

to fix and announce the official exchange

rate of the Renminbi;

to centralise the management of foreign debt and the granting of approval for Chinese institutions or enterprises to

borrow overseas or to issue bonds overseas;

**G.F. 326

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