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China allows more foreign institutions on forex market

The People's Bank of China (PBOC) has given permission to seven more institutions to operate on the country's inter-bank foreign exchange (forex) market. 15 Jan 2016

The Reserve Bank of India, the Bank of Korea, the Monetary Authority of Singapore, the Bank Indonesia, the Bank of Thailand, the Bank for International Settlement, and the International Finance Corporation have all completed registration with the China Foreign Exchange Trading System, giving them official access to the forex market, state-owned news agency Xinhua said.

China's central bank gave clearance for a number of foreign banks and institutions to participate in its forex market for the first time in November last year, Xinhua said.

This week's move brings the total number of foreign institutions with access to the market to 14, the central bank told Xinhua.

The institutions can directly participate in the inter-bank forex market as foreign members, use existing inter-bank forex market members as agents, or entrust the PBOC as their agent, Xinhua said. They are allowed to conduct renminbi and foreign exchange trading of one or more traded forex products, including spots, forwards, swaps and options.

In December, the central bank suspended at least three foreign banks from conducting some foreign exchange business until the end of March, Reuters said.

The Bank of China launched a renminbi (RMB) bond trading index in London, Beijing and Singapore in October and announced that it would establish a trading centre in London.