China's State Administration Of Foreign Exchange (SAFE)

DEFINITION of 'China's State Administration Of Foreign Exchange (SAFE)'

China's foreign exchange regulatory agency, which functions as a bureau under the People's Republic of China. The State Administration of Foreign Exchange's (SAFE) primary responsibilities include drafting policies and regulations related to foreign reserves and foreign exchange, supervising and inspecting forex transactions, and managing China's forex and gold reserves and foreign currency assets.

BREAKING DOWN 'China's State Administration Of Foreign Exchange (SAFE)'

The State Administration of Foreign Exchange's mandate includes the study and implementation of policy measures for the gradual advancement of the convertibility of the renminbi, China's official currency. The significance of an adjustment in the renminbi's value to the global economy, along with China's huge forex reserves, has made SAFE an increasingly important player in international forex and financial markets.

SAFE operated as an independent entity until 1998, when the Chinese government brought it under the control of the People's Bank of China (PBOC). The rationale for this move was to strengthen the PBOC as a central bank.

RELATED TERMS
  1. Foreign Exchange Reserves

    Foreign exchange reserves are reserve assets held by a central ...
  2. SAFE Investment Company (China)

    The SAFE Investment Company is the Hong Kong branch of the Chinese ...
  3. Qualified Foreign Institutional ...

    A program that permits certain licensed international investors ...
  4. Foreign Exchange Market

    The market in which participants are able to buy, sell, exchange ...
  5. People's Bank of China (PBOC)

    The People's Bank of China (PBOC) is the central bank of the ...
  6. Currency Pairs

    Two currencies with exchange rates that are traded in the retail ...
Related Articles
  1. Markets

    China's Foreign Exchange Reserves Fall By Almost $100 Billion

    Almost $100 billion evaporates from China's forex reserves as Beijing continues its support toward yuan.
  2. Investing

    Explaining Foreign Exchange Risk

    Foreign exchange risk is the chance that an investment’s value will decrease due to changes in currency exchange rates.
  3. Markets

    10 Countries With The Biggest Forex Reserves

    Without adequate reserves, a nation's economy can grind to a halt. Here are the 10 nations with the biggest forex reserves.
  4. Markets

    Benefits From A Tango Of China-US Trade and Debt

    China has been accumulating US debt for many decades. Here's why it continues to do so, and the risks and benefits of this for both the US and China.
  5. Trading

    The Forex Market: Who Trades Currency And Why

    The forex market has a lot of unique attributes that may come as a surprise for new traders.
  6. Trading

    The Currency Market Information Edge

    Unique features of the forex market may allow larger players to get a jump on smaller ones.
  7. Markets

    Capital Flight Data Missing from China Bank Report

    The People's Bank of China has omitted a key bit of data from the central bank's most recent report, making it difficult to assess how much capital is leaving the country.
  8. Markets

    The 4 Biggest Chinese Banks

    Learn how the Chinese banking system is operated and managed, and get information about the top four largest banks in the country.
  9. Markets

    How Does China Manage Its Money Supply?

    Here's how the Central Bank of China manages its currency rates and the money supply.
  10. Markets

    China’s Stock Markets vs U.S. Stock Markets

    The U.S. and China are home to the biggest stock markets in the world, but they are very different in a number of important ways.
RELATED FAQS
  1. How can I invest in a foreign exchange market?

    The foreign exchange market, also called the currency market or forex (FX), is the world's largest financial market, accounting ... Read Answer >>
  2. Where is the central location of the forex market?

    There is no central location of the foreign exchange market, often referred to as the forex (FX) market. Transactions in ... Read Answer >>
  3. How can I trade in foreign futures?

    Discover how an American investor can get started in trading foreign futures, including which regulations and restrictions ... Read Answer >>
  4. What are some examples of a Foreign Institutional Investor (FII)?

    Discover some examples of foreign institutional investors, and learn information about the nature of foreign institutional ... Read Answer >>
  5. What is foreign exchange?

    Foreign exchange, or Forex, is the conversion of one country's currency into that of another. In a free economy, a country's ... Read Answer >>
  6. What nations are actively recruiting FDI (foreign direct investments)?

    Understand the concept of foreign direct investments, and learn which countries most enthusiastically pursue investments ... Read Answer >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center