State Administration of Foreign Exchange, Circular on Foreign Exchange Control Issues Relevant to the Renminbi and Foreign Currency Swap Services Provided by Designated Foreign Exchange Banks to Clients
国家外汇管理局关于外汇指定银行对客户人民币外汇货币掉期业务有关外汇管理问题的通知
Renminbi and foreign currency swaps offered to the customer market.
Issued: January 19 2011
Effective: March 1 2011
Applicability: The phrase “currency swap” refers to a trading agreement on the exchange of the renminbi principal and foreign currency principal of a specified amount within a specified period of time and the periodic exchange of the interests derived from both currencies (Article 1).
Main contents: Banks that have obtained the business qualifications for renminbi and foreign currency swap services for clients for one year or more may provide currency swap services for clients. Bank branches may also conduct currency swap services upon authorisation by their legal persons (branches of overseas commercial banks shall be deemed legal persons) (Article 2). The terms of currency swap transactions such as the currency pair and swap tenor shall be determined by the bank. The interest rates for the currency swap shall be determined through negotiation between both parties to the transaction, but may not exceed the upper (or lower) limit of the benchmark interest rates for deposits and loans announced by the People's Bank of China (Article 3).
clp reference:3800/11.01.19promulgated:2011-01-19effective:2011-03-01This premium content is reserved for
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