The State Administration of Foreign Exchange's mandate includes the study and implementation of policy measures for the gradual advancement of the convertibility of the renminbi, China's official currency. The significance of an adjustment in the renminbi's value to the global economy, along with China's huge forex reserves, has made SAFE an increasingly important player in international forex and financial markets.
SAFE operated as an independent entity until 1998, when the Chinese government brought it under the control of the People's Bank of China (PBOC). The rationale for this move was to strengthen the PBOC as a central bank.