China Allows First Overseas Banks into Forex Market
- Three central banks and four international financial institutions will enter its domestic forex market.
The Chinese central bank has announced that it has cleared seven foreign financial institutions to enter its interbank foreign exchange market.
The entities include three central banks – the Hong Kong Monetary Authority, the Reserve Bank of Australia, and the National Bank of Hungary. The rest are the International Bank for Reconstruction and Development, International Development Association, Trust Funds of World Bank Group, and Government of Singapore Investment Corp.
"this will contribute to greater openness of the Chinese foreign exchange market."
The state news agency Xinhua said the seven institutions will be allowed to trade in renminbi and other currencies in Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term products including spots, forwards, options, and Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term on the Chinese domestic market. The agency also quoted the People’s Bank of China as saying that "this will contribute to greater openness of the Chinese foreign exchange market."
Next Monday, the International Monetary Fund is expected to announce that the Chinese currency will join its Special Drawing Rights basket of currencies, which include the US dollar, the pound sterling and the yen. The negotiations between Beijing and the IMF on this have been going on for some time, with the most notable opponents to the move being the UK and the USA.
The Chinese central bank has announced that it has cleared seven foreign financial institutions to enter its interbank foreign exchange market.
The entities include three central banks – the Hong Kong Monetary Authority, the Reserve Bank of Australia, and the National Bank of Hungary. The rest are the International Bank for Reconstruction and Development, International Development Association, Trust Funds of World Bank Group, and Government of Singapore Investment Corp.
"this will contribute to greater openness of the Chinese foreign exchange market."
The state news agency Xinhua said the seven institutions will be allowed to trade in renminbi and other currencies in Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term products including spots, forwards, options, and Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term on the Chinese domestic market. The agency also quoted the People’s Bank of China as saying that "this will contribute to greater openness of the Chinese foreign exchange market."
Next Monday, the International Monetary Fund is expected to announce that the Chinese currency will join its Special Drawing Rights basket of currencies, which include the US dollar, the pound sterling and the yen. The negotiations between Beijing and the IMF on this have been going on for some time, with the most notable opponents to the move being the UK and the USA.