China Forex Reforms: SAFE allows physical and cash settlement in forex forwards
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We start the show with an update on forex regulations. China's State Administration of Foreign Exchange said on Tuesday that it is now allowing both physical and cash settlements in foreign exchange forwards to make the business fully market-oriented. SAFE also said that cash settlement should be denominated in yuan with reference prices based on onshore market exchange rates. China's forex transactions in the domestic market totaled 24 trillion US dollars in 2017.