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The China Foreign Exchange Trading System, which is a unit of the Chinese central bank, has issued an announcement stating its intent to allow companies to offset their FX swaps positions directly between themselves. The new structural change to the foreign exchange market in the country will be made on a trial basis initially.
Chinese companies will effectively be allowed to offset their existing positions open through currency swaps between themselves. The trial will allow banks and financial institutions to go around the limits imposed by current official limits. In essence the new rule is aiming to introduce a loophole for ... (read more)