HONG KONG, July 25 (Reuters) - Hong Kong’s de facto central bank said on Thursday that it will expand the scope of yuan conversion services in the city by allowing non-residents to convert unlimited daily amounts of yuan from next month.
The 20,000 yuan daily conversion limit for residents would remain in place, the HKMA said.
The Hong Kong Association of Banks and the regulatory authorities have held discussions on increasing yuan daily conversion quotas since the beginning of this year.
China’s move to allow a more generous yuan conversion quota in Hong Kong, the world’s largest offshore yuan centre, signals that Beijing is accelerating efforts to open up its tightly controlled capital account and move towards full convertibility of the yuan.
In recent weeks it has sanctioned the opening of a special economic zone in southern China’s Shenzhen and removed barriers to free up cross-border yuan flows. (Reporting By Michelle Chen and Tian Chen; Editing by James Pomfret and Chris Lewis)