Beijing intends to lower controls later this year to allow more mainland firms to retain more hard currency, to support the yuan and spur exports, the nation's top foreign exchange official says.
State Administration of Exchange Control (SAEC) director Zhou Xiaochuan also said he was confident the country would maintain a positive international balance of payments this year, despite Asia's financial crisis.
He told a national conference of foreign-exchange officials the SAEC would take measures to improve the operating environment of mainland firms by giving them greater access to foreign exchange.
Last October, the central bank relaxed three years of tight controls, allowing mainland companies trading overseas which have annual turnover of US$30 million and large industrial firms with turnover of $10 million to retain hard currency equal to 15 per cent of their foreign trade volume in the previous year.
Mr Zhou, a deputy governor of the central bank, said more mainland firms would be allowed to retain hard currency this year.
Requirements on the annual trade turnover and capital reserves also would be lowered, he said.
The moves would help cut foreign exchange costs for mainland firms, give them more flexibility and ease of operations and allow better use of hard currency.