Capital Account and State Administration of Foreign Exchange

China currency: The move aims to improve the convertibility of China currency, the yuan, in the capital account and facilitate cross-border investment and financing, the SAFE said, according to Xinhua China. The yuan is convertible for trade purposes under the current account, while the capital account, which covers portfolio investment and borrowing, is still largely controlled by the state over concerns of abrupt capital flows in and out of the country. China relaxed investment quotas for single institutions under QFII programs and allowed for more convenient capital flow, according a new policy released by the State Administration of Foreign Exchange . The rules became effective on Wednesday. To gradually open the capital account, the government introduced the QFII and RMB-denominated Qualified Foreign Institutional Investors programs in 2003 and 2011 respectively. (news.financializer.com). As reported in the news.