China FX forward rules set to boost renminbi options market

PBoC extends reserve requirements on onshore forwards to foreign banks

pboc building
The PBoC's rule change targets six offshore banks permitted to trade on CFETS

Recent moves by China's central bank to extend reserve requirements on onshore renminbi forex forwards are likely to accelerate a trend towards corporates using the renminbi options market to meet their hedging needs instead, say dealers.

The changes – which were announced in July and became effective on August 15 – mean the six offshore banks that are allowed access to the China Foreign Exchange Trade System (CFETS) must deposit reserves equal to 20% of the notional of forward positions for a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here