China’s foreign exchange regulatory agency, which functions as a bureau under the People’s Republic of China, The State Administration of Foreign Exchange’s (SAFE) announced it will increase FX derivative products. If there was ever a large market for institutional industry participants to get into, it is obviously China. The yuan continues to make weekly news in its rise to global currency status.
Those firms well positioned strategically with Chinese assets and business capabilities stand a chance of winning over business in China’s growing FX industry and cottage industries surrounding it. It is still unknown what kind of kind of protections China could put up to block outside firms from sourcing business to develop their FX infrastructure.
China’s State Administration Of Foreign Exchange (SAFE) primary responsibilities include drafting policies and regulations related to foreign reserves and foreign exchange, supervising and inspecting forex transactions, and managing China’s forex and gold reserves and foreign currency assets.