(5 September 2005 – China) Bank of China has received regulatory approval to handle foreign exchange swap trading for its larger clients, the first Chinese commercial bank to do so.The State Administration of Foreign Exchange gave BOC the green light on the basis that any FX swap business does not involve interest rate swaps.
The bank will initially trial the service in Beijing, Zhejiang, Shanghai, Jiangsu, Guangdong and Shenzen before expanding the service into other parts of the country.
BOC said it had gained experience in the FX market and had rigorous management and operating procedures regarding FX swaps.
The bank currently offers one year FX swaps but is set to extend this period.