Mofcom offshore renminbi rules lack PBOC clarity

Author: | Published: 25 Aug 2011

Draft guidelines issued this week by China’s Ministry of Commerce (Mofcom) mark a departure from mainland regulatory coordination on renminbi internationalisation.

Released on Monday, Mofcom’s draft legislation on foreign direct investment into China outlined how foreign investors will be able use renminbi "legitimately acquired abroad" to invest in China.

The notice aims to promote cross-border trade and investment in renminbi. Investors that had acquired the currency through cross-border trade yuan settlements, offshore renminbi bonds or stocks and yuan from share transfers and capital reduction would...