China to intensify crackdown on forex irregularities in 2017

BEIJING - The State Administration of Foreign Exchange (SAFE) said Friday it will intensify its crackdown on foreign exchange irregularities in 2017, including underground banking.

The administration will also strengthen management of cross-border capital flow, and make further reforms to facilitate trade and investment in order to better serve the real economy, SAFE head Pan Gongsheng said after a work conference.

SAFE will also improve operating management of foreign exchange reserves to maintain safety and flexibility while guarding against losses in value.

China's forex reserves fell for the fifth straight month in November to $3.05 trillion, the lowest level since March 2011.

Despite recent drops, China is still home to the world's largest forex reserves and enjoys forex inflows from its trade surplus and foreign direct investment of about $620 billion each year.