PBOC releases new rules for interbank foreign exchange
China’s economy may be slowing and its stock market is crawling back from a summer crash, but on the upside, the pace of financial reform is anything but glacial these days.
The People’s Bank of China on Wednesday released new rules for allowing foreign investors to participate in interbank foreign exchange trading in the country.
Foreign central banks, sovereign wealth funds and international financial institutions have three channels through which to enter the Chinese market.
The three routes are trading through the central bank; using members of China’s interbank market as agents; and applying to become a member of the market themselves, reported Reuters.
In July, the PBOC decided it would allow foreign investors to trade spot products, forwards, swaps and futures options, with no limits on the sizes of investment, according to Reuters.
China has long been try to move its economy and capital markets away form central planning and toward free markets that would be to foreign investors.