China has opened its interbank foreign exchange (FX) market to foreign central banks and similar institutions, the People's Bank of China (PBOC) announced on Wednesday.
Foreign central banks and other monetary authorities, international financial institutions, and sovereign wealth funds are now allowed to trade all FX products directly -- including spots, forwards, swaps and options -- in China's interbank market without any quota restrictions.
They can enter the market through three channels: entrusting the PBOC as their agent, using interbank FX market members as their agent(s), or becoming a foreign member.
Foreign central banks and similar institutions are asked to register with the PBOC before participating.
Wednesday's announcement came at a time when China is promoting the openness of its once tightly closed financial market as the country's central leadership has made repeated pledges to open China wider to the outside world.
