Legislation roundup: Interbank FX market, deposit insurance and cross-border renminbi

Foreign exchange



State Administration of Foreign Exchange, Circular on Revising the Control Policies Relevant to the Entry into the Interbank Foreign Exchange Market by Financial Institutions

国家外汇管理局关于调整金融机构进入银行间外汇市场有关管理政策的通知



The main contents of the Circular include:



(1) promotion of the simplification of administration and delegation of authority to lower levels, abolishing prior entry permission for financial institutions wishing to enter the interbank foreign exchange market and further allowing the regulatory function of the market mechanism;

(2) improvement of market oversight, clarifying the basic trading rules for financial institutions on the interbank foreign exchange market and continuing to drive forward the creation of a new framework for the administration of the foreign exchange market that has government regulation and market self-regulation working in tandem; and

(3) rationalisation of regulations, repealing four exchange control documents that have a bearing on the entry into the interbank foreign exchange market by financial institutions and enhancing the transparency of exchange control policies.