If anyone needed further data why Chinese market is by far the next big thing in forex then State Administration of Foreign Exchange (SAFE) is releasing the following information: China’s foreign exchange market saw its transaction volume hit 14.2 trillion U.S. dollars in 2011, up four times from 2006. From 2007 to 2011, forex transaction volumes soared by an annual average of 40.3 percent, the said in a statement.
At the end of 2011 there were 319 authorized businesses operating in the foreign exchange activity, out of them 318 were active and the daily average transaction volume reached 58.1 billion U.S. dollars.
China allowed the direct trading of the yuan against the Australian and Canadian dollars in November last year, following the introduction of the Malaysian ringgit and the Russian ruble into the interbank forex market in 2010. A total of nine foreign currencies, including the U.S. dollar, HK dollar, Japanese yen, euro and British pound, can be traded on China’s interbank foreign exchange market.
China Union Pay was allowed to start processing forex deposits again after a 3 months hiatus just yesterday. In the past year or so Chinese government is taking gradual steps to liberalize the Yuan and allow the creation of offshore Yuan trading hubs in Hong Kong and UK.