China allows first foreign institutions to enter interbank FX market

[BEIJING] The first batch of foreign central banks, sovereign wealth funds and international financial institutions have been registered to enter China's interbank foreign exchange market, the country's central bank said on Wednesday.

The seven institutions include three central banks: Hong Kong Monetary Authority, Reserve Bank of Australia, and National Bank of Hungary. The International Bank for Reconstruction and Development, International Development Association, Trust Funds of World Bank Group, and Government of Singapore Investment Corp, are the other four institutions to be admitted to the domestic market, the People's Bank of China said in a statement on its website.

The PBOC said that the institutions would now be allowed to trade spot products, forwards, swaps, currency swaps and options in the country's domestic foreign exchange market.

REUTERS