Jin Rong Shi Bao·2025-12-26 12:43Core Viewpoint - The People's Bank of China and the State Administration of Foreign Exchange have announced the nationwide promotion of the integrated currency pool policy for multinational companies, aimed at enhancing cross-border fund management efficiency and reducing operational costs for enterprises [1][2]. Group 1: Policy Implementation - The integrated currency pool policy will be implemented nationwide starting December 26, 2025, following successful pilot programs in various cities [1]. - The policy aims to transition from localized trials to a comprehensive framework, enhancing the predictability and transparency of cross-border financial management [1][2]. Group 2: Background and Development - The increasing number of multinational companies in China has led to a higher demand for efficient cross-border fund management due to diverse currency structures and frequent fund flows [2]. - Initial pilot programs began in 2021, with subsequent expansions in 2022 and 2024, optimizing management policies and simplifying application processes [2][3]. Group 3: Benefits of the Policy - The integrated currency pool allows for centralized management of both domestic and foreign currency funds, improving fund utilization efficiency and reducing management costs [4][5]. - As of the third quarter of this year, 98 multinational companies have participated in the pilot, benefiting nearly 5,000 domestic and foreign member enterprises, with cross-border transactions amounting to approximately $150 billion from January to September [3][5]. Group 4: Cost Reduction and Efficiency - The policy significantly lowers operational costs by eliminating the need for multiple fund pools and accounts, thus reducing account management fees and cross-border exchange costs [6]. - Banks are expected to provide streamlined services for enterprises, enhancing the efficiency of fund pool operations [6][7]. Group 5: Integration of Policies - The policy integrates various favorable measures for enterprises, allowing eligible companies to directly enjoy benefits from multiple facilitation policies [7]. - The approach aims to shift from pre-approval to post-management, thereby reducing institutional transaction costs for multinational companies [7].