On March 12, the People's Bank of China and the State Administration of Foreign Exchange announced the launch of a pilot cash-pooling service in Beijing that integrates domestic and foreign currency management for multinational companies.

The launch of the pilot program in the capital, as stated by the monetary authorities, aims to advance the construction of the "two zones" in Beijing. The move will strengthen regional trade, facilitate investment, create a better business environment, and further solidify the development of Beijing's economy. The pilot program will unify and upgrade the existing domestic and foreign currency management policies by integrating respective merits from both. It will serve multinational companies with relatively high credit ratings and provide them with even further advantages to facilitate the use of cross-border capital.

When it comes to foreign exchange management reform, Beijing has always been a pilot area for multinational companies, with 80 multinationals carrying out centralized cross-border capital operation. This creates a better business environment for optimizing resource allocation and improving the capital efficiency of cross-border financing. In addition to supporting the construction of a higher-level open economy, this pilot cash-pooling service will further improve the centralized operation of cross-border capital and attract more multinational companies into setting up global or regional fund management centers in Beijing.

(Note: Content source is from Economic Daily.)