Currency futures could be the first financial futures
contracts introduced in China, ahead of stock index and bond
futures, following further FX deregulation and continued
problems in China's securities industry.
The country's central bank, People's Bank of China (PBoC),
introduced several measures this week to further liberalise its
FX market. Qualified import/export companies and non-banks can
now trade the domestic spot FX market while renminbi (RMB)
forwards and swaps can now be traded by qualified financial
The development follows a string of initiatives by the
central bank this year, including de-pegging the RMB to the
dollar, allowing eight new FX pairs to be traded in its China
Foreign Exchange Trading System (CFETS) electronic market, and
approving seven foreign banks to become market makers.
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