In an effort to liberalize the currency market, China’s State Administration of Foreign Exchange (SAFE) has published a new set of rules which will help loosen restrictions on yuan trading of banks.
The rules, effective from January 1, will simplify 14 sets of related regulations as well as will introduce new provisions to relax forex trading practices of banks.
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According to the changed rules, daily caps on banks’ foreign exchange positions have been replaced with weekly limits from January 1.
Besides, unified standards have been set up for total foreign exchange positions that banks can hold.
The rules are also applicable to China-based foreign banks, and in case of overseas banks with over one offices in China, one key office must be appointed to manage the positions.
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By GlobalData
