From the International Herald Tribune:
China has scrapped rules requiring domestic companies to convert a portion of foreign earnings into Chinese currency, the government said Tuesday, in a move that could ease pressure on Beijing’s foreign exchange system.
Chinese companies will now be allowed to decide on their own how to use money earned abroad, the State Administration of Foreign Exchange said. Previous rules requiring companies to convert at least 20 percent of their foreign earnings into Chinese yuan boosted demand for the currency and increased pressure for it to rise against the U.S. dollar and other currencies. [Full Text]