PBOC, SAFE: control hot money

Officials from the central bank and the Foreign Exchange regulator have spoken Tuesday morning, clarifying their position on forex management and reserves. Director of the State Administration of Foreign Exchange and also vice-governor of the People's Bank of China, Yi Gang said authorities will make it easier for companies to trade, by simplifying related procedures. Meanwhile, it will also keep a close eye on capital flows to control speculation and risk. The official said China had managed to keep most of its investments of forex reserves intact, despite the global financial crisis. He stressed again that China will continue to improve the system for the yuan exchange rate while keeping its value at a reasonable level.