Chinese banks get access to foreign-exchange account market

China's currency regulator has released draft regulations which allow domestic banks to compete directly with foreign banks by opening local foreign-exchange accounts for overseas-registered companies.

The new State Administration of Foreign Exchange (Safe) regulations will open a new market for Chinese domestic banks, which had been available only to local affiliates of foreign banks. The move also indicates the government's continuing pursuit of the use of the renminbi for trade settlements.