China Foreign Exchange Center declared on March 28 that the interbank forex business would be launched in May this year.

The new service was approved by the State Administration of Foreign Exchange last year. The move is believed to boost and improve China's interbank foreign exchange market. It also offers a direct access for domestic small and medium sized financial institutions to the international forex market.

In addition, it is expected to lay a foundation for a perfect mechanism of the formation of RMB exchange rate and the full convertibility of yuan.

China's financial institutions do not rank high on the international market and there are such problems involving trading channels for the forex market.

By People's Daily Online