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	NOTICE OF THE PEOPLE'S BANK OF CHINA ON ISSUES CONCERNING THE MANAGEMENT OF FOREIGN EXCHANGE RATES

	(No. 227 (2003) of the People's Bank of China promulgated on November 16, 2003)


SUBJECT : FOREIGN EXCHANGE RATES
ISSUING DEPARTMENT : THE PEOPLE'S BANK OF CHINA
ISSUE DATE : 11/16/2003
IMPLEMENT DATE : 11/16/2003
LENGTH : 348 words
TEXT :

Upon approval of the State Council, you are hereby notified of the following issues regarding the management of foreign exchange rates:

1. As of November 20, 2003, the financial institutions may determine their respective deposit interest rates of small sums of foreign currencies (less than US$3 million) in light of the variations of interest rates in the international financial market via the legal persons as Chinese-funded commercial banks (including urban credit cooperative banks and rural credit cooperative banks engaging in business of foreign exchange) or branches of foreign-funded banks (via the principal reporting banks if any), but they shall take the deposit interest rates of small sums of foreign currencies announced by the People's Bank as the upper limits for the aforesaid deposit interest rates.

2. All financial institutions shall perfect the measures and operating procedures for the management of the pricing of foreign exchange deposits and loans, the risks and the float of interest rates.

3. All financial institutions shall properly keep the records of interest rates of foreign currencies in pursuance of the Notice of the General Office of the People's Bank of China on Some Matters Related to the Management of Interest Rates of Foreign Currencies by Keeping Records (No. 84 (2002) issued by the General Office of the People's Bank of China). Every financial institution shall add the content related to the interest rates of small sums of foreign currencies to the record-keeping form of the interest rates of foreign currencies, i.e. the highest interest rates, lowest interest rates, average weighted interest rates and amounts of small sums of deposits of various foreign currencies in different periods, which shall be reported to the People's Bank of China within 10 days after the current month.

4. All branches (business management departments) of the People's Bank of China shall print and distribute this Notice to the local urban commercial banks, rural credit cooperative banks and foreign-funded banks engaging in business of foreign currencies, and shall strengthen the monitoring, analysis and management of local interest rates of foreign currencies, and maintain the normal financial market order.