China allows renminbi interest rate swaps

The People's Bank of China (PBOC) issued regulations last month allowing banks to conduct renminbi-denominated interest rate swap transactions on a trial basis. The move is the latest in a series of measures by the central bank to liberalise the renminbi derivatives market.

In a statement on its website, the PBOC says the decision to open up the renminbi interest rate swaps market is in response to the need for participants in the interbank bond market to better manage interest rate risk. The