RMB convertibility to be achieved in five years: forex chief

China would progressively make its currency, RMB, convertible on the capital account in the next five years amid its push for the deeper internationalization of the currency, or yuan, the country's foreign exchange chief said Tuesday.

"The overall strategy for the reform of China's foreign exchange management system is to achieve the convertibility of the yuan on the capital account progressively, as this will make trade and investment more convenient and boost the development of the foreign exchange market," said Yi Gang, head of the State Administration of Foreign Exchanges (SAFE), in a signed article published on SAFE website.

The remarks by Yi, also deputy governor of the People's Bank of China (PBOC), China's central bank, came after the PBOC announced last week that the country's qualified businesses and banks could now settle their overseas direct investment in yuan.

Yi also said the SAFE would continue to maintain a strict stance in cracking down on hot money inflows into the country during the next five years.

Source: Xinhua