China permits renminbi rate swaps

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The People's Bank of China (PBoC) has issued new regulations allowing banks to conduct renminbi-denominated interest rate swap transactions on a trial basis, the latest move in a series of measures to liberalise the renminbi (RMB) derivatives market.

The regulator has said the move is in response to the need for participants in the interbank bond market to better manage interest rate risk, as well as their assets and liabilities. The interbank bond market has developed swiftly in recent years