China Closes Door On Foreign Banks Trading Local Currency
REGULATIONS
China has closed the door on foreign banks trading yuan on their own accounts, in a move that appears to reverse recent progress on currency reform, sources say. The move has angered some banks which had hoped to profit from the spread in forex transactions but will now have to continue to work on a commission basis.
New rules which take effect this week allow local banks their own bid and offer prices for trading the yuan but foreign banks must still rely on rates dictated by foreign exchange
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