BEIJING — The State Administration of Foreign Exchange (SAFE) reaffirmed on Dec 22 that China will promote the convertibility of its currency on the capital account in an orderly manner.

Currently, the yuan’s convertibility on the capital account is subject to strict government control to prevent capital outflow.

“SAFE will work to accelerate the development of China’s foreign exchange market and allow market forces to play a decisive role,” said a statement on its website.

The country will also establish a management system for cross-border capital flows to ward off systemic and regional risks in the financial system.

The statement was released after SAFE officials met to discuss detailed measures to implement policies set during the Central Economic Work Conference.