PBOC opens FX market to foreign banks
(27 November 2015 – China) The People’s Bank of China has announced that it has cleared seven foreign financial institutions to enter the domestic foreign exchange market.
Three central banks, including the Hong Kong Monetary Authority, the Reserve Bank of Australia, and the National Bank of Hungary are joined by International Bank for Reconstruction and Development, International Development Association, Trust Funds of World Bank Group, and Government of Singapore Investment Corp.
The seven institutions will be allowed to trade in renminbi and other currencies in forex products including spots, forwards, options, and swaps on the Chinese domestic market.
The central bank has been reported as saying that “this will contribute to greater openness of the Chinese foreign exchange market.”
The International Monetary Fund (IMF) is expected to announce that the Yuan will join its Special Drawing Rights basket of currencies next week.
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