On November 25 2015, the first group of foreign central banks and similar institutions completed registration with the China Foreign Exchange Trading System (CFETS), and officially gained access to the Chinese inter-bank foreign exchange (FX) market. This will contribute to greater openness of the Chinese foreign exchange market.
The first group of foreign central banks and similar institutions included the Hong Kong Monetary Authority, the Reserve Bank of Australia, the Hungarian National Bank, the International Bank for Reconstruction and Development, the International Development Association, the World Bank Group Trust Funds and the GIC Private Limited. This group covers all three categories of institutions, namely foreign central banks (monetary authorities), international financial institutions, and sovereign wealth funds. The above-mentioned foreign central banks and similar institutions chose on their own one or more channels from the three options, including directly participating in the inter-bank FX market as foreign members, using inter-bank FX market members as their agent(s), and entrusting the PBC as their agent, to conduct RMB and foreign exchange trading of one or more traded FX products including spots, forwards, swaps and options.
