Q: The State Administration of Foreign Exchange has provided window guidance to selected commercial banks with regard to a higher deficit in bank's sales and settlement of foreign exchange, requiring them to take proper measures to narrow the deficit, according to recent media reports. What would you say about this?

A: This is not true. Foreign exchange authorities have not taken any new regulatory measures for currency exchanges or cross-border receipts and payments thus far, except to require banks to observe the existing foreign exchange regulations, implement the self-regulatory requirements and intensify authenticity and compliance reviews. The foreign exchange administration policies remain consistent with the previously published ones, with no change made. The foreign exchange purchase, payment, receipt and settlement are handled as usual.

Next, foreign exchange authorities will systematically press ahead with the reform in key aspects, further enhance the level of trade and investment facilitation, intensify early warning with regard to monitoring of cross-border capital flows, help banks to improve the self-regulatory mechanism, and to implement the business requirements and responsibilities in authenticity and compliance reviews, while maintaining a tough stance on foreign exchange irregularities, in a bid to safeguard China's economic and financial security.