Forex rules scrapped to stem liquidity

The government has scrapped rules that forced exporters to bring home foreign currency.

The State Administration of Foreign Exchange (SAFE) said that effective July 1, it had withdrawn the rules - drafted in the late 1990s - that required exporters to exchange all their foreign exchange earnings with banks in a stipulated period.

Preferential treatment was given to exporters with good records in converting their foreign exchange and punishment for those that did not.