China's State Administration Of Foreign Exchange (SAFE)

AAA

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.

INVESTOPEDIA EXPLAINS '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. Currency Convertibility

    The ease with which a country's currency can be converted into ...
  2. CNY (China Yuan Renminbi)

    The currency abbreviation for the China yuan renminbi (CNY), ...
  3. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by ...
  4. China Investment Corporation - ...

    A government-sponsored entity of the People's Republic of China ...
  5. State Administrator

    The government agency or official who oversees and enforces state-level ...
  6. Revaluation

    A calculated adjustment to a country's official exchange rate ...
RELATED FAQS
  1. How does the role of Medicare/Medicaid affect the drugs sector in the U.S.?

    Medicare and Medicaid have enormous influence on the pharmaceutical, or drugs, sector in the United States. For instance, ... Read Full Answer >>
  2. What are the ethical arguments against government subsidies to companies like Tesla?

    The ethical argument behind government subsidies is that they should be put into place to help industries that will, in turn, ... Read Full Answer >>
  3. What do I do if I think an accountant is in violation of the Generally Accepted Accounting ...

    The Financial Accounting Standards Board (FASB) promulgates generally accepted accounting principles (GAAP) in the United ... Read Full Answer >>
  4. How autonomous are special administrative regions?

    When most people think of special administrative regions, or SARs, they are referring to Hong Kong and its relationship with ... Read Full Answer >>
  5. Can a special administrative region declare autonomy?

    Special administrative regions, or SARs, namely Hong Kong and Macau, do not declare autonomy so much as they are granted ... Read Full Answer >>
  6. How will a value added tax impact the government budget?

    In 1992, the Congressional Budget Office conducted an economic study on value-added tax, or VAT. At the time, the CBO concluded ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Investing In China

    Investment opportunity is huge in China. However, investors should consider the pitfalls, understand the risks and rewards, focus on shareholder-friendly companies and stick to investments they ...
  2. Forex Education

    Why China's Currency Tangos With The USD

    Investopedia explains: It takes two to tango, but unless both partners move in perfect cohesion, a sequence of graceful maneuvers can be reduced to a series of clumsy moves. The latter depiction ...
  3. Mutual Funds & ETFs

    Understanding BRIC Investments

    Brazil, Russia, India and China are becoming more popular for investing, but there is still plenty of risk among BRIC countries.
  4. Entrepreneurship

    Top 6 Factors That Drive Investment In China

    FDI in China surpassed $100 billion in 2010, certain key factors drive foreign direct investment.
  5. Mutual Funds & ETFs

    ETF Analysis: Vanguard International Stock

    Discover how the Vanguard Total International Stock ETF is managed, and learn which investors may find it suitable as part of a diversified portfolio.
  6. Investing

    Can Donald Trump Really Win the Presidency?

    Understand why demographic trends and his lack of broad appeal are likely to keep Donald Trump from being a serious contender for the presidency.
  7. Economics

    What Is a Quota?

    In business, quota usually refers to the sales target for a salesperson or a sales team.
  8. Economics

    What Does Infrastructure Mean?

    Examples of infrastructure include mass transit, communication, sewage, water and electric systems, plus roads, bridges and tunnels.
  9. Economics

    What's a Centrally Planned Economy?

    A centrally planned economy is one where the government controls the country’s supply and demand of goods and services.
  10. Economics

    The Emergence of Brazil, Russia, India and China

    Brazil, Russia, India and China are referred to by the acronym BRIC.

You May Also Like

Hot Definitions
  1. Dog And Pony Show

    A colloquial term that generally refers to a presentation or seminar to market new products or services to potential buyers.
  2. Topless Meeting

    A meeting in which participants are not allowed to use laptops. A topless meeting organizer can also ban the use of smartphones, ...
  3. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  4. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  5. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  6. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!