PBoC liberalises derivatives market
NEWS
Under the new rules, released last week, banks with spot forex and derivatives licences can apply to the PBoC to conduct RMB forwards transactions. Those that win approval can then register with the State Administration of Foreign Exchange (Safe) to engage in cross-currency swaps, as long as these do not involve the exchange of interest rates.
In theory, banks do not need separate approval to conduct forward trades in the interbank market. Those with derivatives licences and PBoC approval to
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