Chinese business people wanting to invest overseas will no long face quota limits on the amount of Reminbi they exchange for foreign currencies, the State Administration of Foreign Exchange (SAFE) announced Thursday.

The policy, which takes effect July 1, aims to cope with the demand of domestic investors who want to invest overseas, said SAFE.

According to a SAFE circular published Tuesday, Chinese investors can also remit foreign exchange abroad, with the approval of SAFE, to cover expenses relating to the cost of making their investment, it said.

Meanwhile, the circular urged the departments concerned to step up the examination, approval and supervision of Chinese investors overseas to help them prevent and control investment risks.

Over the past few years, SAFE has gradually relaxed its controls on exchanging Renmenbi into foreign currency for investment purposes in compliance with the central government's policy of inspiring Chinese enterprises to "going out" and explore the overseas market.

China's foreign exchange reserves hit 875.1 billion U.S. dollars by the end of March, the most of any country in the world.

Source: Xinhua