BEIJING Jan 13 China's foreign exchange
regulator said on Friday that recent media reports about forex
controls are untrue and disturb normal market operations.
The State Administration of Foreign Exchange would continue
to crack down on illegal activity in the forex market, a notice
posted on its microblog account said.
The Chinese government has been intensifying a campaign to
put the brakes on the depreciation of the yuan, including
tightening controls on capital outflows. The yuan
fell more than 6.5 percent against the dollar last year.
Earlier on Friday, Bloomberg reported that the central bank
had asked some banks to stop processing cross-border yuan
payments until they balance inflows and outflows.
Citing unidentified people familiar with the matter, it said
the directions, issued verbally on Wednesday, required lenders
to show at the end of every month that the amount of outgoing
yuan matches the sum that comes in, it reported.
The PBOC has yet to respond to a faxed request from Reuters
for a comment.
(Reporting by Zhang Lusha and Ryan Woo; Writing by John Ruwitch
in SHANGHAI; Editing by Kim Coghill)