Governor of the People's Bank of China Zhou Xiaochuan stressed recently that China's recent reform on the forming of RMB exchange rates had demonstrated the necessity of progress on faster development of the forex market and innovation of financial products.

He called for taking the opportunity brought about by the RMB exchange rates mechanism reform to accelerate the development of forex market and introduce various forex derivatives, so that commercial banks, together with other financial institutions, would offer more, better risk management tools to their clients and businesses would be able to minimize their forex risk exposure according to their contracts.

He called on commercial banks to carefully work out their own strategy of risk management and risk exposure, breaking their delusion of any risk transfer to the government as a practice under the discarded fixed rate system.

Commercial banks, he said, should keep innovative in terms of designing financial products and pricing ability to offer better financial products and services to customers in a competitive environment.

By People's Daily Online